- Pip Munch
- Posts
- 📉 Biggest Crash In 46 Years
📉 Biggest Crash In 46 Years
Pip Munch
February 02, 2026
Want to make more money from trading? Stop trading your small $500 account. It’s not going to go anywhere. The answer? Prop firms.
☕️ GM Munchers! Saturday date night got canceled because I was in the fetal position watching Bitcoin charts. My wife brought me a blanket and whispered "you said it only goes up." She's not wrong, but she didn't have to say it.
On today’s menu:
📉 Trump's Fed Chair Pick Just Nuked Markets
😬 Silver's Worst Crash In 46 Years
😭 Bitcoin's Weekend Bloodbath
📱 Apple’s $2 Billion Acquisition
❗️The Inflation Report That Killed Rate Cut Dreams
Friday’s numbers:
S&P 500 | 6,939 | -0.43% |
Nasdaq | 23,461 | -0.94% |
Dow Jones | 48,892 | -0.36% |
Bitcoin | $77,370 | -1.63% |
BREAKING NEWS
📉 Trump's Fed Chair Pick Just Nuked the Precious Metals Party
Trump announced Friday morning that Kevin Warsh will be the next Fed Chair, succeeding Jerome Powell when his term ends in May. The market's reaction? Absolute chaos.
What Happened: Warsh is a former Fed governor known for being hawkish on inflation—basically the exact opposite of what Trump wants. Markets expected someone who'd slash rates aggressively, but instead got someone who's spent years criticizing the Fed for being too loose with money.
Why Markets Care: The U.S. Dollar Index immediately rallied 1% because Warsh signals tighter money ahead. Translation? Investors are betting rates stay higher for longer, which makes bonds more attractive and risk assets less sexy.
The Munch Take: This is a major unexpected plot twist, kind of like when my wife asks me if I want to go golfing. Trump wants cheap money to juice the economy but appointed somebody who might do the exact opposite of that. That means a stronger dollar and that’s bad news for commodities.
💣️ Silver's Historic Crash: 46 Years in the Making
Remember when I said metals were acting like a kid on Halloween and eventually the sugar crash would come? Yeah, that crash came on Friday.
What Happened: Silver crashed 33% in a single day—the worst daily decline since the 1980s. Gold wasn't spared either, dropping 11%. These weren't just bad days. They were historic wipeouts.
Why Markets Care: Silver rallied 58% in January alone, hitting an all-time high of $120/oz. That kind of vertical move creates a bubble held together by duct tape and hopium. Many traders were using massive leverage (borrowed money) to buy in, expecting the rally to continue forever. When Warsh got nominated and the dollar surged, prices dipped. Those leveraged traders got margin calls—forced to sell immediately—which created a doom loop of selling that triggered more margin calls.
The Munch Take: This was a textbook liquidation cascade. When everyone's using borrowed money to chase the same trade, one match is all it takes to burn down the barn. The Warsh news was that match. Moral of the story? When silver rallies 58% in one month, maybe take some profits instead of adding more leverage. Just saying.
BROUGHT TO YOU BY
Want to make money trading? Use prop firms.
Lark's 1-Step Career Program pays you up to $1,000 monthly even during drawdowns. Hit 3 profitable days of 0.5% and stay above -3.5%—that's it.
January Promo: Get your first payout and we'll give you a free account of the same size. Automatically. No extra cost.
One payout = instant second evaluation. Scale faster. Pay less.
7% max drawdown. Free retry. TradingView included. AI journal. Fast payouts. 24/7 support.
Build consistency while getting paid to learn. Most firms make you start over. We help you scale.
CRYPTO
😬 Bitcoin's Weekend Bloodbath (Sorry, Michael Saylor)
Thought you'd have a peaceful weekend? Bitcoin had other plans.
What Happened: Bitcoin crashed below $80,000 over the weekend—its first time under that level since March 2025. Saturday alone saw a 7% drop. Even worse? MicroStrategy's $40+ billion Bitcoin position officially turned red as Bitcoin fell below $76,000.
Why Markets Care: Same story as gold and silver—leveraged longs got liquidated in violent fashion. When the dollar strengthens and inflation fears fade (thanks to Warsh's hawkish reputation), speculative assets get hammered. Kalshi traders are now predicting Bitcoin could drop to $59,000 this year.
The Munch Take: Today’s market open is going to be ugly for crypto stocks. Watch MSTR (MicroStrategy) and Coinbase—we're shareholders of COIN, so we're feeling this one too. The lesson here? Charlie Munger was right when he said three things make men go broke: Liquor, ladies and leverage. Right now, we’re seeing the leverage one play out. Buckle up.
MARKET OVERVIEW
🍿 Tasty Movers & Shakers
📱 $AAPL Apple just dropped $2 billion on an acquisition. Last time they spent this much? Beats headphones. This time? A bizarre Israeli startup called QAI that tracks your face to read speech without you actually talking. Yes, it's as weird as it sounds.
💳️ $V Visa fell 3% Friday despite beating earnings. Turns out when fewer people are swiping cards, Wall Street gets nervous. Transaction volume dropped and the market said "no thanks."
💰️ $AMZN Rumour mill says Amazon might dump $50 billion into OpenAI in the next few weeks. Guess they found spare change after firing 16,000 people. Nothing says "innovation" like reallocating your former employees' salaries to AI.
📉 $NFLX Netflix is on month five of consecutive declines—its longest losing streak since the 2021-2022 bloodbath. At this point, they should just make a documentary about their own stock performance.
👙 According to the Wall Street Journal, OnlyFans is selling 60% of the company for $3.5 billion, valuing it at $5.5 billion total. Meanwhile, we're over here writing about PPI inflation. Clearly made some career mistakes.
BIG PICTURE
❗️ The Inflation Report That Killed Rate Cut Dreams
If the Warsh news wasn't bad enough, Friday's PPI inflation data poured gasoline on the fire.
What Happened: Core PPI (Producer Price Index) came in at 3.3%—way hotter than expected. This measures wholesale inflation, meaning businesses are paying more for goods. Guess what they do with those higher costs? Pass them to consumers.
Why Markets Care: The Fed just paused rates at their meeting last week, saying they needed to see "more good data" before cutting. This report is the opposite of good data. Before this, markets hoped for a March rate cut. That's now dead.
The Munch Take: We're back to "higher for longer" territory. The Fed cut rates in late 2025, and if inflation spikes back up now, it means they cut too early—a classic policy mistake. Combine hot inflation data with Kevin Warsh (inflation hawk) getting nominated, and you've got a double-negative for anyone hoping for cheap money. The January CPI report drops February 11, 2026. If that also comes in hot, rate cuts might not happen until summer at the earliest. Risk-off mode activated.
🚀 Pre-Market Fuel
What do you think of today's edition? |
Share Pip Munch
Chances are you have some trading friends. Why don’t you be a pal, share Pip Munch and earn some goodies for it?
You currently have 0 referrals, only 1 away from receiving The Trading Plan That Helped Me Pass 4 $100,000 FTMO Challenges.
Or copy and paste this link to others: https://pipmunch.com/subscribe?ref=PLACEHOLDER