From what I saw in your story, you are just worried about your friend, and you just want to somehow help him, and I don't see anything wrong with that. There is only one thing that I saw that seems to be wrong in what you said: that you gave a guarantee that the $1,000 that he will release for this will be $100,000.
You are quite wrong on that point; you shouldn't have said that because you know that Bitcoin is volatile and the market is unpredictable. Then, now that you see as a result of what you did that you are now the one in trouble, maybe it's better to tell him the truth or just return the $1,000 that he entrusted to you, or you can also explain correctly that the $1,000 can grow and it is also possible that its profit is not that big in the short period of time.