Michael Keller

What we have to do every four years, you talked about the reason why, is we have to deleverage.

And so this is the realized price here, $1.9 trillion in Bitcoin.

This is the valuation we got to in the last bull cycle, $2.5 trillion.

That premium from the realized price, the amount everyone bought in at effectively, and the valuation, that $1.5 trillion premium, that was all a lot of credit.

It was perps.

DeFi loans, stable coin loans, centralized loans, all of these loans on top of that.

And every single four years, we have to purge the credit, the excess credit.

We are purging?

That's what we're doing.

We're purging all of that credit.

Well, he took on some leverage, like leverage is sin, right?

So he took on some leverage.

He didn't take on a lot, but I guess he did take on much more than he has in previous markets.

So maybe he'll have to cough it up.

Maybe he won't.

But this purple graph right here might have to get close to the blue graph, might have to even get below it.

And in previous cycles, it's gotten about 20% to 30% below it.

If you want to translate this to Bitcoin price, below 54K.

Okay.

So those three things are happening.