The Bitcoin Trap, Why Institutions and Whales Caused the Fall to $75K!

Added: 2026-05-23

[00:00:00]Bitcoin is now below $76,000.

[00:00:03]However, there is a huge options expiry that's going to be happening on Friday that could definitely flip the script.

[00:00:11]And in this video, I'm going to break it down. We're going to talk about the options expiry. We're going to cover some of the fear and uncertainty and doubt in the market. And then I'm going to go ahead and talk about my expectations for the Bitcoin price. So, Bitcoin right now has seen some significant selling. In fact, you can just see there on the chart itself that we've flipped from a buy to a sell, but this will probably change a couple times within the day. However, we are just at incredibly important support level here at about 75,600 or so, somewhere in that region. And then there's going to be a really crucial support level at about 72K for the short-term uptrend. That's going to be very important as well. Now, the reason why we've seen Bitcoin sell off, we've seen some some pretty significant long liquidations already happen. In fact, today alone, we've had about $167 million worth of longs get liquidated.

[00:01:08]And we've seen some significant long liquidations over the past couple of days as well. That's one of the reasons why Bitcoin is down. If you take a look at the SOS so value ETF tracker for Bitcoin, we can see that last couple of weeks, we've actually had two straight negative weeks of outflows, about $2 billion total of these institutions selling Bitcoin ETFs and not buying.

[00:01:34]That right there is one of the major reasons why we've seen the Bitcoin price stagnate and decrease over the last couple of weeks. We've also seen some significant selling from whale activity such as Whale Wallet Mr. 100. Whale wallet Mr. 100 as you guys may remember normally has been stacking some serious sats, but lately they have been selling a little bit here and there. That's another reason why. And then another reason is just simply that the AI trade right now has been sucking up all of the liquidity in the market. We go ahead and take a look at the QQQ index for instance over the last month up 11%. Now compare that with IBIT which is basically going to track the price of Bitcoin and you see that you have about only a 1% gain in that same time for IBIT and a really nasty little red day today. And that's another reason why simply put the AI trade has just been sucking up all the liquidity. most of the money that's floating around is actually going to buy these AI stocks and there's just not a lot of interest right now in Bitcoin and crypto. That's another reason why in addition to that we also see miners have been selling.

[00:02:46]This is our miners reserve chart. Miners reserve shows that the miners have been selling after a very large accumulation event here at about March or so coming into April was sideways and then largely for April and May we can see these miners reserve levels falling and falling and falling which means miners are offloading Bitcoin at increasing rates. In fact, if we look at the Bitcoin exchange reserve the number of Bitcoin on exchanges over the last month we've even seen this number rise. All right. Now, the overall trend is downwards, okay? But we're in the middle of a little bit of a bump in the road right now in which we're seeing Bitcoin come into exchanges as opposed to getting bought from the exchanges. So, that's another reason why we've seen some pretty strong selling and as a result, the the exchange reserve right now is heading in the opposite way. Now, finally, I want to talk about Mark Cuban. And Mark Cuban said something very interesting this week. He actually said that he's selling his Bitcoin.

[00:03:52]Okay? And the reason for that is because he describes it as a failed hedge and surviving monetary bet. Okay? He was trying to view Bitcoin as a digital gold in order to cover and hedge yourself against war risk. Okay? And he basically said that this is not a good hedge against the war. And so he sold all of his Bitcoin. And you know what?

[00:04:15]Honestly, I think that he's wrong about this. In fact, Mark Cuban saying things like this and selling all of his Bitcoin reminds me a lot of memes that you'll see on Reddit, such as this wonderful meme here where you see all the people lining up to buy Bitcoin here at about 100K and nobody buying at 59K. That's basically what's going to happen, I think, when it comes to Mark Cuban. He's going to talk about the fact that it's not a good hedge, but then when Bitcoin price does go up, he's probably going to wind up buying it above 100K. In fact, I would not be surprised if that was the case. He has a little bit of FOMO. He's been reading into the the fear and the uncertainty and the doubt like a lot of people have. And so, he's decided to jump ship. In fact, if you take a look at the crypto fear and greed index here, we're sitting at about a 27 showing still we're in a fearful environment.

[00:05:06]Okay. Now, that being said, this is all short- termism. Okay. All we have to do is wait until the Clarity Act gets passed, which is something that I think is probably going to happen this year.

[00:05:16]And I think that we're going to wind up seeing Bitcoin accelerate adoption reacelerate yet again. But in the near term, if you take a look at the Bitcoin options expiry, there is another good reason why the Bitcoin price continues to fall and that is because the max paying price is sitting at 75K.

[00:05:34]Now, what's important about this is that 75K acts like a magnet. Bitcoin price is going to gravitate towards that 75K and we are very close to that level and we've seen over the past couple of weeks throughout May that it's been gravitating towards this level and there's 6.3 almost $6.4 billion worth of options set to expire. Now, this could unchain Bitcoin from the from this price cap essentially this from this structure and cause Bitcoin to move to the upside.

[00:06:10]We can see that volatility after this expiry jump and Bitcoin could actually move in a sustained manner higher. All right. So, we'd have to see basically just Bitcoin going back up again from about 75K going back up and retesting that 81K region right here, which has been some strong resistance over the past couple of weeks. Now, I think that it's very possible that we do get Bitcoin above that 80K region. However, it might actually wind up taking a week or two after this max paying price and after the options expiry. So, expect that week, next week during this options expirate, you're going to see volatility and then after that is when you're going to see the big move. Okay? I have not sold any of my Bitcoin. I've not done any of that stuff. I still have my IBIT trade going on right now. And I think that eventually we're going to wind up seeing the sentiment shift in the opposite direction because markets move in cycles. We were at extreme fear. Now we're at fear. We're going to swing right past neutral and we're going to go straight to greed and then back up to extreme greed because that's what markets do. All right, but let me know in the comments below. Are you selling your Bitcoin like Mark Cuban because in the short term it's not good enough a hedge and you have FOMO and you'd rather FOMO your money into AI stocks instead?

[00:07:36]Or are you still holding with your diamond hands? Let me know in the comments below and I'll catch you guys in the next video.