Trump's son praises "smart trading"! Portnoy buys the dip with 1 million dollars in XRP.

Businessman and social media celebrity Dave Portnoy bought $2 million worth of Crypto Assets within an hour during the market crash on November 17, including $1 million in XRP, $750,000 in BTC, and $400,000 in ETH. This move was praised by President Trump's son, Eric Trump, co-founder of American Bitcoin, who called it a “smart trade.”

Dave Portnoy boldly invested 2 million dollars to buy the dip

(Source: Youtube)

This drop provided many traders with an opportunity to enter the market, and Portnoy simply could not resist. He recently revealed to his fans on X that he purchased $2 million worth of crypto assets in just one hour on November 17. The fund allocation shows his level of confidence in different assets: $1 million in XRP accounts for 50% of the total investment, $750,000 in BTC accounts for 37.5%, and $400,000 in ETH accounts for 20%. This configuration shows that Portnoy's confidence in XRP far exceeds that of the other two mainstream assets.

Portnoy is the founder of the sports and pop culture company Barstool Sports, often discussing his crypto trading with social media fans, regardless of success or failure. This transparency has earned him a large following, with many viewing him as a “real trader” rather than those fake mentors who only showcase successful cases. His trading record can be described as tumultuous.

In 2021, Portnoy admitted that during the market crash, he panic-sold Bitcoin (BTC) and Ethereum (ETH), a mistake that cost him the opportunity for significant gains afterward. In July of this year, he again admitted to exiting XRP two weeks before the cryptocurrency surged by 60%, resulting in millions of dollars in losses. These two painful lessons have clearly changed Portnoy's investment philosophy. Now, with the cryptocurrency market crashing, he is testing his luck again, but this time he is choosing to go against the tide—entering the market when others are panicking.

“Blood on the streets, Dave is like a piranha. Dave is like a great white shark. He is just a shark on the fin.” Portnoy uses this vivid metaphor to describe his predatory mindset during market panic. This shift in attitude shows he has grown from an emotional trader in the early days to a more mature contrarian investor. Buying heavily during extreme market panic is precisely the embodiment of Buffett's investment philosophy of “be greedy when others are fearful.”

Why did Portnoy allocate the largest portion of his capital to XRP? This choice deserves in-depth analysis. XRP is the most volatile among the three major assets, but it also has the highest potential returns. From a technical perspective, the current price of XRP at $2.05 has dropped about 44% from its July high of $3.65, with a correction greater than that of BTC and ETH. From a fundamental perspective, Ripple's lawsuit with the SEC has been resolved, regulatory uncertainty has been eliminated, and several institutions are applying for XRP ETFs. These factors may be the reasons why Portnoy is heavily invested in XRP.

Eric Trump endorses and praises 'Smart Trading'

This move has been praised by Eric Trump, the son of President Trump and co-founder of American Bitcoin (NASDAQ: AMBTC), a bitcoin mining company. Eric Trump described it as a “smart deal” and publicly expressed support on social media. The Trump son remains unfazed by the downturn in the crypto market, stating that volatility is a “friend” and an opportunity to buy.

Eric Trump, as a co-founder of an American Bitcoin company, has direct commercial interests in the encryption industry. The company focuses on Bitcoin mining, and Trump's son's involvement has brought significant brand effect and political connections. His appreciation for Portnoy's investment is not just a personal viewpoint but also represents the Trump family's overall stance on the crypto market.

The assertion that “volatility is a friend” is worth pondering. For the average investor, volatility is often seen as a source of risk and stress. However, for investors with ample capital and a long-term perspective, volatility indeed provides opportunities for buying low and selling high. Eric Trump's viewpoint reflects the mindset of professional investors: prices during market panic often deviate from fundamental values, which is precisely the best time to establish positions.

Trump's son has always been clear about his support for Bitcoin and Ethereum. The co-founder of American Bitcoin Corp. is a well-known supporter of Bitcoin and Ethereum, encouraging purchases when the market sharply declines. It's likely that Eric Trump was referring to Portnoy's operations in Bitcoin and Ethereum, as these two assets are directly related to his company's business. However, he did not raise any objections to Portnoy's heavy investment in XRP, which may imply that the Trump family also has an open attitude towards XRP.

It is worth noting that the Trump family's influence in the encryption space is expanding. President Trump himself launched the $TRUMP meme coin, while Donald Trump Jr. is involved with World Liberty Financial, and now Eric Trump is running a Bitcoin mining company. This comprehensive layout shows that the Trump family is viewing Crypto Assets as important business and political assets. When Trump's sons publicly support high-profile investors like Portnoy, they are essentially endorsing the entire encryption market.

Market Crash Background: 440 Million USD Liquidation Disaster

In the past 24 hours, over 154,000 crypto traders have been liquidated, with more than $440 million wiped out. As of the time of writing, the total market capitalization of crypto assets has decreased by 4.5% in a day, reaching $3.04 trillion. Bitcoin has fallen by 4.5% to $89,470.98, Ethereum (ETH) has dropped by 7.5% to $2,916.40, and XRP has decreased by 7.5% to $2.05.

154,000 traders being liquidated is an astonishing number. This means that on average, more than 100 traders are forced to close their leveraged positions and suffer losses every minute. Although the liquidation amount of $440 million is not the highest in history (the “519 incident” in May 2021 saw over $10 billion liquidated in a single day), it is still quite significant given the current market capitalization scale.

The chain reaction of liquidations is an important driver of further price declines. When a large number of long positions are forcibly liquidated, additional selling pressure is created, further pushing down prices. This, in turn, triggers more liquidations, forming a vicious cycle. The market can only stabilize when prices drop to a sufficiently low level that clears most leveraged positions.

Key Data for Market Crash

Number of Liquidators: Over 154,000 traders

Liquidation Amount: Over 440 million USD wiped out

Market Capitalization Erosion: Total market cap dropped 4.5% in one day to $3.04 trillion

Last Friday's crash once again devastated the entire savings of cryptocurrency traders, leaving many unable to face their wives. These extreme cases have spread widely on social media, becoming a reflection of the market's panic. When leveraged positions are liquidated, the losses often go beyond the invested capital and may include borrowed funds, leading to substantial debts.

Portnoy's past mistakes and this strategic shift

Portnoy's past trading mistakes made this reverse operation more dramatic. In 2021, he admitted to panic selling Bitcoin and Ethereum when the market crashed, selling right at the bottom. This July, he again acknowledged that he exited XRP two weeks before the cryptocurrency soared by 60%, losing millions of dollars. The commonality between these two painful lessons is: emotional trading and a lack of long-term perspective.

This $2 million investment shows that Portnoy's strategy has undergone a fundamental change. He chose to make large purchases during a time of extreme market panic, with a wave of liquidations and social media filled with despair, which requires tremendous mental resilience and a deep understanding of market cycles. More importantly, he allocated his maximum position to XRP instead of the relatively safer Bitcoin, indicating his willingness to take on higher risks in exchange for greater returns.

Eric Trump's endorsement adds a political hue to this investment. When a member of the Trump family publicly supports a particular investment decision, it is not just a personal opinion, but may also reflect the family's overall judgment on the relevant assets. Considering the Trump administration's supportive stance towards the encryption industry, Eric Trump's praise may be interpreted by the market as an indirect endorsement of XRP and the overall crypto market.

For ordinary investors, Portnoy's operations provide a case study. Buying in times of extreme panic requires courage, but it also requires financial strength to withstand possible further declines. Two million dollars may be just a small part of Portnoy's portfolio, but for the average investor, it could be their entire net worth. Therefore, while learning from his contrarian thinking, one must also consider their own risk tolerance.