The Bitcoin Sell Off No One Is Explaining This Changes 2026

It has been a rough month for Bitcoin and you want to pay attention to this even if you are not a Bitcoin investor because there are three triggers causing this Bitcoin selloff that you want to pay attention to because it can help you understand where markets are going to go for the rest of 2026. So let me break this down because trigger number one is the Federal Reserve Bank. Not what they did but what they might be doing in the future because very recently President Trump announced that he is going to replace the chairman at the Federal Reserve Bank by a guy named Kevin Warsh. Why does that matter? Because people have been buying gold and Bitcoin because they're concerned about the dollar, that the dollar is losing value, that inflation is happening, more money printing is going to happen, lower interest rates are going to happen. All these things are going to hurt the value of the dollar which means Bitcoin isn't going to become more needed, gold is going to become more needed. In 2025 we saw the worst year for the United States dollar in almost a decade and now when we talk about the Federal Reserve Bank which is the central bank here, President Trump has been saying time and time again that he wants a couple things. Number one, he wants the Federal Reserve Bank to cut interest rates aggressively. Number two, he wants to see more stimulus and number three, he wants to see a weaker dollar. I should also say he wants the Federal Reserve Bank to do whatever the White House says. He has made these four things very clear. Well, many investors had assumed that President Trump would pick somebody who would do those four things, that they would cut interest rates, they would print more money, that they would do whatever the White House says. In turn, what President Trump did is he announced Kevin Warsh to lead the Federal Reserve Bank. Kevin Warsh used to work at the Federal Reserve Bank during the 2008 crash so he has experience working at the Federal Reserve Bank. He's kind of more of a seasoned guy at the Fed as opposed to somebody who would just do whatever Trump wants. Kevin Warsh when he was at the Fed during the 2008 crash advocated for higher interest rates, not lower interest rates. That has some investors saying, maybe he won't be as aggressive with cutting interest rates as we originally thought. Kevin Warsh has said in 2026 that he wants to reduce the money printing because he wants to reduce how much money is out there. In technical terms, he says he wants to tighten the balance sheet. This is what originally triggered a sell-off of things like gold and bitcoin because many investors had assumed that the Federal Reserve Bank would go on this money printing spree, on this cutting of interest spree, and this weakening of the dollar spree because that's what President Trump said. Well, now Kevin Warsh is saying, I don't want a weaker dollar. I do want to cut interest rates but I think I can balance the inflation that would happen with cutting of interest rates by tightening the balance sheet, meaning removing money from our economic supply. But also, I want the Federal Reserve Bank to stay independent from the White House. I want the Federal Reserve Bank to have a division between the government and the Fed, which is very different what President Trump had been saying prior to announcing Kevin Warsh. Now, we don't know what's going to happen. Kevin Warsh is going to be or supposed to be appointed in May, but we don't know what he's going to do. So, this is just now people speculating but because Kevin Warsh is somebody who is not as aggressive, or at least it seems not as aggressive in creating inflation, in weakening the United States dollar, people are saying, oh, the gold and the bitcoin trade that we originally thought would be a necessity because the dollar is going to lose so much value didn't seem as urgent. So, that's what originally triggered the sell-off. That brings me to trigger number two, which is the structural shift with bitcoin. Let's go back in time five years, six years, seven years. A handful of years ago, the idea of buying bitcoin was that it was a scarce asset. Yeah, it's a digital asset. Yeah, maybe it's hard to understand what it's worth, but the idea is that bitcoin, there's only 21 million bitcoins out there. That's the most bitcoins that are ever going to be created. And because it's a limited supply of bitcoin, it is scarce and it has value because of that. What has happened over the last five, six, seven years? Derivatives have been created. There's now futures contracts with bitcoins. You can trade options with bitcoin. You can create bitcoin ETFs. You can go into call sheet and predict what's going to happen with bitcoin prices. So, we've seen a lot of money entering not just bitcoin itself, but the surrounding derivatives of bitcoin, which almost removes that scarcity aspect because now there's many different ways to get a piece of action with bitcoin. And what we're seeing is that there's been a lot of money flowing into bitcoin, not because people want to actually own the asset, but because they want to get rich because of bitcoin. What do I mean? Well, if you think hypothetically that bitcoin is going to go up to $150,000 a coin, you could go on to Coinbase or Robinhood or whatever brokerages you want. I'm not advocating for any of these. You can go there and buy bitcoin because you think it's going to go up to $150,000. But what we've been seeing happen a lot more of is that people have been going on to call sheet instead and saying, instead of me buying bitcoin, how about I just bet if bitcoin's going to go up to $150,000 a coin? The reason is, is because if I bet on it as opposed to investing in it, I can make way more money. I made a video about this earlier this year. I'll link it for you down in the description, that this is what I call stage three of the investing cycle, where we're seeing more and more people that are not investing their money because they want to own the asset, not investing their money with debt, but now investing in derivatives, that there are so many more derivatives of things like bitcoin, which anytime we've seen that happen in history has been an indication of a bubble forming. I made this video. I'll link it for you in the description so you can watch it for yourself. But we've been seeing this happen across multiple assets and that is something that is a telltale sign that there's some concerns that if this asset price would go down, it would create more of a panic and sell off, which brings me to trigger number three, which is of course panic selling. Bitcoin sees often panic selling and panic buying. Why? Because it is a speculative asset and speculative assets have a lot more volatility and anytime you start to hear something bad happening in the asset markets, whether it's stocks, whether it's gold, whether it's real estate, you're going to get the news that the world is ending. When you see the opposite, that it's booming, you're going to hear the news that it's never going to come down. So let me show you exactly what happened. We started to see bitcoin prices fall and then Michael Burry went out, who is the famous guy from the Big Short, and he made a statement saying that if bitcoin falls below $50,000 a coin, we're going to have a major problem because quote, miners could go bankrupt and tokenized metals futures could collapse into a black hole with no buyer. Immediately after that, the next day we saw bitcoin prices fall by another 10% or so. Now we've seen a lot of bitcoin volatility over the last many years and this is nothing new, but the panic selling continues to happen and anytime you have a speculative asset, panic selling is going to happen. And so I'm not saying you should buy bitcoin, I'm not saying you shouldn't buy bitcoin, I'm not advocating for bitcoin, I'm not going against bitcoin. I want you to understand what's happening because this is the same psychology that can apply to any asset and bitcoin is an interesting one because it is the most speculative out of the major assets. Things like gold, stocks, real estate, bitcoin is the most speculative because number one, it is the newest and number two, it hasn't been around to show the actual value of it the way that gold has, the way that real estate has, the way that stock has. I'm not saying that there's no value in bitcoin, I'm not saying that it is going to be the future either. What I'm saying is we can learn from this because if we do continue to see more volatility, it can spread from bitcoin to other things. We've already started to see it happen with AI stocks and I made a video explaining why. It's because what had happened in the past in 2025 was if a company announced that they're going to pour money that they don't have into AI, that stock boomed. Why? Because everybody said, oh if they're doing AI stuff, they must make a lot of money. So in 2025, if a company announced we're going to go into deep debt to build AI technology, that stock went up. In 2026, it's a very different story. In 2026, if a company says we're going to go into deep debt to build an AI, that stock might not go up. In fact, we've seen many of those stocks go down. We saw it happen with Oracle, we saw it happen with Meta when they announced that they're going to go into deep debt to do some AI because what investors are looking for now isn't just investment into AI, it's a path to actually making money off of it. And what investors are now realizing is some companies are going to make money off of AI, some companies are not. And if a company is going deep into debt to fund this AI project, it may work, it may not work, which means now it becomes more speculative. And if it's going to be more speculative, you have to be able to factor in that risk and what investors are saying, hmm, maybe I don't want to be in such a speculative investment, maybe the upside is not in there for me. Some companies are going to do great, some companies are going to fail. And as money is becoming tighter, especially now that we're getting the news that maybe the Federal Reserve Bank isn't going to be as aggressive with weakening the dollar as we originally thought. We don't know, but that's what we're kind of getting that gist of with Kevin Warsh. Maybe we're not going to see as high of inflation as we originally thought. Maybe these things are going to change people's investing perspectives because in the last five years, we've seen gold prices boom, we've seen silver prices boom, we've seen them outpace the stock market. Now, that's not a normal thing to happen because, well, gold doesn't really produce a lot of economic utility. You might say, oh Jaspreet, you use gold in certain electronics, you use it in jewelry. Well, sure, but not that much. Generally, when people buy gold, they buy it because they use it as a store of value, they use it as a hedge. Again, I'm not saying anything against gold. I've been investing in gold as a small piece of my portfolio for many years, but I don't make it a huge piece of my portfolio. I don't even care what happens to the price of gold because when I look at gold, for me, it's a way of saving money. It's a way of saving hard money because I do believe that the dollar is going to lose value over time. I mean, that's kind of a fact. It's not even a belief or a theory. The Federal Reserve Bank says they want two percent inflation, although we're at three percent right now, and realistically, we're probably even higher than that. We want inflation. Inflation means the dollar is going to lose value, but that doesn't mean that gold is always going to go up. It doesn't mean that Bitcoin is always going to go up. It doesn't mean that stocks are always going to go up. It doesn't mean that real estate is always going to go up, but like I've been saying, this is why it's important to have a diversified investment portfolio where you have different asset classes because there are going to be times when real estate goes up and stocks go down. There's going to be times where stock goes up and Bitcoin goes down, and that's where when you understand these asset cycles instead of just chasing hot investments, you can capitalize on opportunities because people that are really pro-Bitcoin, for them, this is a great thing. Volatility is a great thing because they can come in and buy more Bitcoin at a cheap price. For people that are chasing Bitcoin trying to get rich, volatility is a bad thing because that means now you thought you were going to make money, but now you're losing money, and now you sell at a loss, and then the people that really believe in Bitcoin can come in and buy it. Same thing with stock market volatility. When stocks fall, the people that get upset are the people that were chasing stocks that don't know what they were doing because now they're either forced to sell because of a margin call or they sell because they're panic selling, but the people that are sophisticated, a little bit smarter investors, they love it when market crashes happen because when a market crash happens, you can come in and buy good investments on sale, and that's why it doesn't matter what you're investing in. You have to understand how investing works because cycles happen. Markets go up. Markets go down. People get very emotional, and it's much more easy to get emotional now when everything on the internet is so exciting, but as an investor, sometimes you got to be able to cut through the noise, and that's what smart investing is all about. Now, if you are an investor or want to become an investor, again, I have a free investing master class where I walk you through how you can get started as an investor and find hidden investment opportunities before everybody else. There's a ton of value in this master class. When you register for it, you're also going to get access to market briefs, which is my newsletter for investors completely free, so if you want to get my investing master class and market briefs all for free, all you have to do is register. I have the link for you down in the description below, and if you got value out of this video, the best thank you is a referral, so if you could, please share this video with a friend, family member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. Thank you. Gold and silver has been falling at the fastest rate we've been seeing in more than a decade, and Bitcoin prices are getting hit hard. Why? Because of what President Trump just said. President Trump has been very critical of the Federal Reserve Bank, so although President Trump has been demanding lower interest rates, the Federal Reserve Bank has been saying no. President Trump just announced his new...