Bitcoin Crashes $10K Overnight – A Reason Why You Should Also Diversify Into Gold

Well, here we go again.

Bitcoin just hit a record high—again—and then promptly dropped nearly $10,000. That’s over $530 million in liquidations in just 24 hours. If you’ve got skin in the crypto game, you felt that one.

I get it. Bitcoin has had an amazing run. It’s flashy, it’s fast, and it makes headlines. But while folks are chasing green candles, too many are forgetting the one thing every seasoned investor knows: You don’t go all-in on any one horse.Especially one with knees as shaky as Bitcoin’s.

Let’s take a step back.

📉 What Just Happened with Bitcoin?

Last week, Bitcoin touched $124,496—a brand-new record. But by this morning, it had fallen as low as $114,706. That’s the fourth record this year, by the way. And each time, profit-takers and macro fears come in like a wrecking ball.

Over $124 million in long Bitcoin positions were force-liquidated—that’s when leveraged traders are forced to sell at market prices to cover their losses. That kind of fire sale drives the price even lower.

Why? Because Wall Street is getting nervous again. Inflation is running hotter than expected, and the Fed is starting to backpedal on interest rate cuts. When the music stops, you don’t want to be left holding nothing but vapor.

🧨 The Bitcoin Reserve Isn’t What You Think

On top of that, we got a little reality check from Treasury Secretary Scott Bessent. He confirmed that Trump’s so-called “Bitcoin reserve” is only going to include confiscated Bitcoin—not new purchases. So no, Uncle Sam isn’t loading up on digital gold anytime soon. They’re just seizing it from criminals and figuring out what to do with it. That’s not bullish—it’s bureaucratic.

Meanwhile, stocks tied to crypto like Bitmine Immersion and Bullish are stumbling too. Even Coinbase and Galaxy Digital had only modest gains while everything else was sliding.

So what do you do with all this volatility?

Let me tell you what I’ve been telling friends and readers for over 40 years:

🪙 Gold and Silver Are Still the Foundation

I don’t care how exciting crypto gets—you do not bet your future on speculation alone. You balance it with real, tangible, time-tested wealth: gold and silver.

Bitcoin may be “digital gold,” but you can’t hold it in your hand. You can’t bury it. You can’t spend it at your local store when things hit the fan. And most importantly—you can’t trust the government not to regulate it, freeze it, or tax it into oblivion when it suits them.

Gold and silver? They’re outside the system. They’ve been money for thousands of years. And when things get rough—wars, inflation, political chaos—they’ve always held value.

I grew up watching my old man stretch every dollar to put food on the table. He kept a few silver coins tucked away, and he told me, “Frank, when the banks fail, this’ll still be worth something.” I didn’t fully understand that until I worked through the 1980s inflation crisis—and saw gold save more than one family from ruin.

💡 Crypto and Precious Metals: They’re Not Enemies

If you’ve invested in Bitcoin, good on you. Seriously. I’m not here to knock it. It’s smart to look for alternatives to the corrupt fiat system we’ve got today. But here’s the deal:

You need a hedge against your hedge.
Crypto is a bet on the future.
Gold and silver are insurance against the system.

You don’t drop your health insurance just because you’re eating healthy. And you shouldn’t skip physical assets just because Bitcoin’s doing well today.

📊 What's Coming Next?

The Fed’s Jackson Hole meeting is this week, and every investor is watching for clues. Will they cut rates? Will inflation force them to hold steady? Nobody knows. And that uncertainty is exactly why now is not the time to be overexposed to digital assets.

Look, crypto ETFs posted some solid inflows this month, with Bitcoin funds bringing in $547 million and Ethereum a whopping $2.9 billion. That’s impressive, no doubt. But those flows can reverse overnight.

With gold and silver, there’s no counterparty risk. No sudden rules changes. No cyber hacks. No margin calls.

Just real money. The kind that’s bailed out empires, families, and everyday folks for generations.

✅ Final Word: Protect What You’ve Built

If you’re reading this, you’re probably doing better than most. You’re paying attention. You’re thinking for yourself. That’s rare these days—and valuable.

But thinking isn’t enough. You’ve got to act. You’ve got to diversify. And you’ve got to hedge against the system that’s proven, time and again, that it won’t protect you when things go south.

So whether Bitcoin hits $200,000 or drops to $40,000, just remember:

Gold and silver aren’t about getting rich. They’re about staying rich.

📥 Download Bill Brocius’ free guide: Seven Steps to Protect Yourself from Bank Failure
📦 Ready to add physical gold and silver to your portfolio? Get started here

Stay sharp out there.

— Frank Balm