$19B Erased in Hours - Bitcoin Bounces Back

Welcome everyone to the weekly edition of The Roundup,

This week we're covering 👇

• History's largest liquidation event flushes out leverage while Bitcoin recovers.

• Steak 'n Shake rejects Ethereum after Bitcoin community pushback (even Vitalik agrees).

• Prediction markets raise billions as gambling becomes mainstream finance.

Let's jump in!

1️⃣ $19B Liquidation Event Proves Bitcoin's Antifragility

Over $19 billion in leveraged positions evaporated within 24 hours last Friday, after President Trump threatened 100% tariffs on Chinese imports.

This triggered what analysts are now dubbing the “flash crash” which led to the largest liquidation event in Bitcoin’s history, estimated at ~16x times larger than the COVID market panic.

Here's the kicker though - Bitcoin has already begun to recover to pre-crash prices, proving once again why it's the only digital asset worth holding over the longer run.

BTC dropped as much as 13% from peak to trough in a single hour, while long-tail altcoins saw catastrophic losses, with some tokens briefly falling to near zero.

The carnage was unprecedented. The March 2020 COVID crash saw approximately $1.2B liquidated, while the November 2022 FTX collapse resulted in around $1.6B in liquidations. This recent flash crash? 16x larger than the COVID crash.

But here's the story the legacy media isn’t covering: this liquidation event wiped out roughly $65 billion in open interest, resetting global positioning to levels not seen since July earlier this year.

Translation? All the crypto degens who were trading on leverage got flushed out of the system, creating what we believe is now a much healthier base for Bitcoin's next leg up.

The lesson here is painfully simple: don't use leverage. One Reddit user shared his story of losing more than six years of disciplined dollar-cost averaging in a single liquidation event.

Apparently (lets remember this is a Reddit story and thus difficult to fact check), he was staking sats when Bitcoin traded as low as $4,000. Now? Six years of his life savings, gone in an instant.

And what has happened since? BTC has already recovered to pre-crash levels, while the Reddit user got liquidated and can no longer participate in Bitcoin’s upside from here on out.

2️⃣ Steak 'n Shake Proves That Community Matters (Vitalik Agrees)

In an era where brands can lose billions in market cap over a mere logo change (yes, we’re looking at you, Cracker Barrel), respecting your community has never been more important.

Steak 'n Shake learned this lesson in real-time after running a poll asking whether it should accept Ethereum payments (alongside Bitcoin payouts).

After nearly 49,000 votes with 53% initially in favor of adding ETH, the company suspended the poll just four hours later, posting: "Poll suspended. Our allegiance is with Bitcoiners. You have spoken."

The Bitcoin community's response was swift and brutal. Prominent Bitcoiners vowed to never eat there again if Ethereum was added. The pressure worked.

Plot twist? Even Ethereum co-founder Vitalik Buterin defended the decision, stating that it was a good decision that he respects.

When even Vitalik agrees that Bitcoin is the superior choice, you know something's up 😂. We covered a similar response last week by Litecoin Founder Charlie Lee who all but admitted Bitcoin (and not Litecoin) was the OG.

The numbers speak for themselves: Since introducing Bitcoin payments across U.S., French, Monaco, and Spanish locations, Steak 'n Shake has reported a 15% yearly increase in sales during Q3 of ‘25 (with this growth partially credited to new Bitcoiners' patronage).

This isn't just about payments though, its about understanding Bitcoin’s community strength. And the community rewards businesses for staying true to sound money principles.

Ethereum on the other hand is more of a science experiment with high fees and slow settlement times (whereas Bitcoin is digital, permissionless money).

3️⃣ Prediction Markets Raise Billions as Gambling Goes Mainstream

If there's one trend that screams "we're living in a debased monetary world" it's the explosion of prediction markets over the last few years.

Kalshi just raised $300 million at a $5 billion valuation, more than doubling from its $2 billion valuation just three months earlier (wild!).

Not to be outdone, rival platform Polymarket recently went on to secure a $2 billion investment from NYSE-owner Intercontinental Exchange, valuing the company at approximately $8 billion. The platform is even teasing a potential token launch.

What's driving this boom? Monetary debasement and a generation that's watched their purchasing power rapidly evaporate. When saving in dollars means guaranteed losses to inflation, young people become increasingly willing to take higher and higher risks just to stay ahead.

Whether it's sports betting, political prediction markets, or speculating on global events, the message is clear: “tradfi” investments (i.e. the 60/40 portfolio) aren’t cutting it anymore. People are seeking alternatives to outpace asset inflation, even if it means gambling on everything from election outcomes to Fed decisions.

The prediction market industry could hit $8 billion by 2030, according to Piper Sandler analysis. That's not a bug in the system, it's pure evidence of monetary debasement playing out in the real economy today.

🎯 The Final Word

This week we witnessed widespread market panic. Politicians threatening tariffs. Altcoins implode (yet again).

Yet Bitcoin somehow always finds its footing. This week's $19 billion liquidation event was the biggest stress test in crypto history, and Bitcoin emerged stronger while everything else struggled to recover.

Steak 'n Shake also proved that your community matters while prediction markets raised billions at absurd valuations, pointing to a generation trying to outpace monetary debasement through speculation. When traditional savings fail, people gamble.

The lesson? In order to protect your wealth there are few (if any) better assets to allocate your capital towards. While retail is busy chasing yield and speculating on political outcomes, the smart money sticks to scarce, sound money that no government can inflate away.

Chat next week,

The Rhino Bitcoin Team

⚡Lightning Round

Coinbase Launching Bitcoin Amex Card: Coinbase set to launch American Express card offering Bitcoin cashback rewards.

Bitcoin Dominance Rises: Bitcoin's market dominance climbed recently, proving capital flows into the king when markets get turbulent.

Roger Ver Settles Tax Case: Founder pays $48 million to settle U.S. tax fraud allegations.