The state and the billionaires tighten control amid leveraged wipeouts

The accumulation by governments and celebrity tokens contrasts with heavy liquidations and stalled sentiment.

Alex Prescott

Key Highlights

  • A U.S. government custodial wallet reportedly added 127,000 coins from seized assets.
  • More than $171 million was liquidated across crypto markets within one hour.
  • A $107,000 Bitcoin print triggered roughly $714 million in additional liquidations.

r/CryptoCurrency spent today oscillating between power, pain, and perception. On one end, billionaires and governments flexed custody and clout; on the other, traders got fed into the liquidation woodchipper while retail debated whether crypto is a socially unattractive hobby. The thread that ties it all together: control has replaced mania, and the crowd is starting to notice.

Power Plays: Boasts, Bags, and the State’s Quiet Accumulation

The community’s cynicism sharpened as a meme spotlighted Eric Trump’s brag about a billion-dollar crypto haul, while a separate discussion dissected how the Trump family’s token suite and WLFI ambitions might keep siphoning speculative capital. When political celebrity intersects with memecoins and “real-world asset” promises, retail becomes liquidity, not beneficiary.

"Grifters gonna grift...." - u/Raynsen (80 points)

Meanwhile, the quiet heavyweight is the state: a widely shared tracker of seized assets revealed the U.S. government wallet growing by 127k coins, underscoring how sovereign custody now rivals corporate treasuries. In a market that once sold sovereignty as decentralization, the most dominant hands increasingly belong to politicians, prosecutors, and public balance sheets.

Market Mechanics: Uptober’s Optimism Meets the Liquidation Machine

Under the hood, the casino ran another familiar script: traders watched $171M vanish in liquidations within an hour, then stared at headlines about Bitcoin’s $107K print triggering $714M more as “Uptober” morphed into something less cheerful. Volatility remains the business model, and leverage is the toll.

"This is easy mode on for exchanges. just blow up longs then blow up shorts then longs. rinse and repeat, cz gets rich and pumps his shitcoins. DAMN!" - u/e07f (161 points)

The retail mood swung from resignation to boredom as a widely upvoted lament framed this as the most tedious bull market on record. Price is grinding, alts feel embalmed, and each relief rally feeds the next wipeout—parabolic dreams postponed while institutions and derivatives desks dine on hope, fear, and funding.

Culture, Status, and the Adoption Paradox

Crypto’s social image took a comedic beating with a viral segment listing crypto as a “least attractive hobby” for men, just as a meme pitted gold’s relentless march against ETH’s stalled promise. The community’s coping mechanism is self-deprecation, but the deeper anxiety is status: if crypto is culturally uncool and financially underperforming, what keeps the faithful in the pews?

"Alipay and WeChatPay is the most used mode of payment in China. Was there few months back and literally you can’t get anything done without them. Its huge!" - u/iLikeYouWorld (37 points)

The answer may be infrastructure, not vibes: Ant Group’s move to launch an Ethereum L2 hints that onboarding at Alipay scale could dwarf sentiment cycles—yet price apathy today tells a harsher truth. Adoption without narrative rarely moves charts; rails matter, but the story that makes people care still writes the checks.

Journalistic duty means questioning all popular consensus. - Alex Prescott

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Sources

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