It is statistically safer to store coins on exchanges than to self custody. 👇 A few thoughts: Assuming the data is correct, my impression is Willy has always been a strong supporter for self custody. Hack data is easier to collect on the CEX side, usually major news. It is harder on the self-custody side, where hacks, lost coins, etc are often not reported. On the exchange side, some deceased exchanges drag down the data. Binance (and a few other exchanges) have always covered users for any CEX side hacks. Not saying one is better than another. Different approaches have different risk profiles (and product offerings), and may be better suited for different people. A balanced approach is probably best.

THIS IS WHY BITCOIN DUMPED NON STOP FROM $126,000 TO $60,000. Bitcoin has now crashed -53% in just 120 days without any major negative news or event and this is not normal. Macro pressure plays a role, but it’s not the main reason Bitcoin keeps dumping. The real driver is something much bigger that most people aren’t talking about yet. Bitcoin’s original valuation model was built on the idea that supply is fixed at 21 million coins and that price moves based on real buying and selling of those coins. In the early cycles, this was mostly true. But today, that structure has changed. A large share of Bitcoin trading activity now happens through synthetic markets rather than spot markets. This includes: • Futures contracts • Perpetual swaps • Options markets • ETFs • Prime broker lending • Wrapped BTC • Structured products All of these allow exposure to Bitcoin’s price without requiring actual Bitcoin to move on chain. This changes how price is discovered because now selling pressure can come from derivative positioning rather than real holders selling coins. For example: If institutions open large short positions in futures markets, price can fall even if no spot Bitcoin is sold. If leveraged long traders get liquidated, forced selling happens through derivatives, accelerating downside moves. This creates cascade effects where liquidations drive price, not spot supply. That is why recent sell offs look very structured. You see long liquidation waves, funding flips negative, open interest collapses, all signs that derivatives positioning is driving the move. So while Bitcoin’s hard cap has not changed, the effective tradable supply influencing price has expanded through synthetic exposure. Price today reacts to leverage, hedging flows, and positioning, not just spot demand. Adding to this, there are other factors too driving the current dump. GLOBAL ASSET SELL-OFF Right now, selling is not isolated to crypto. Stocks are declining. Gold and silver have seen volatility. Risk assets across markets are correcting. When global markets move into risk-off mode, capital exits high-risk assets first and crypto sits at the far end of the risk curve. So Bitcoin reacts more aggressively to global sell offs. MACRO UNCERTAINTY & GEOPOLITICAL RISK Tensions around global conflicts, especially U.S.–Iran developments, are creating uncertainty. Whenever geopolitical risk rises, supply chain risks increase, and markets shift toward defensive positioning. That environment is not supportive for risk assets. FED LIQUIDITY EXPECTATIONS Markets had been pricing a more dovish liquidity backdrop. But expectations around future policy leadership and liquidity stance have shifted. If investors believe future Fed policy will be tighter on liquidity even if rates eventually fall, risk assets reprice lower. ECONOMIC DATA WEAKNESS Recent economic indicators job market trends, housing demand, credit stress are pointing toward slowing growth conditions. When recession fears rise, markets derisk. Crypto, being the most volatile asset class, sees outsized downside during those transitions. STRUCTURED SELLING VS CAPITULATION Another important observation: This sell off does not look like panic capitulation. It looks structured. Consecutive red candles, controlled downside moves, and derivative driven liquidations suggest large entities reducing exposure, not retail panic selling. When institutional positioning unwinds, it suppresses bounce attempts because dip buyers wait for stability before re-entering. PUTTING IT ALL TOGETHER It is a combination of: • Derivatives driven price discovery • Synthetic supply exposure • Global risk-off flows • Liquidity expectation shifts • Geopolitical uncertainty • Weak macro data • Institutional positioning unwind Until these pressures stabilize, relief rallies can happen, but sustained upside becomes harder.

A man with his style.