Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

The breakdown is sponsored by nexo.io, Circle, and FtX, and produced and distributed by CoinDesk.

What's going on, guys? It is Friday, October 14th, and today we are catching up on all the

DC chatter around crypto. Before we get into that, however, if you are enjoying the breakdown,

please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into

the conversation, come join us on the Breakers Discord. You can find a link in the show notes or

go to bit.ly slash breakdown pod. Also a disclosure, as always. In addition to them being a sponsor

of the show, I also work with FTX. All right, folks, well, to close out this week, today we are

catching up on some of the news and discourse in the crypto space that we missed while discussing inflation yesterday.

However, first I want to follow up on those absolutely whipsaw markets.

By the time I finished yesterday's show, markets had recovered from their big morning losses,

but we didn't really have much of a chance to actually figure out what was going on. So to recap, Thursday's stock market open saw a violent move down, following

the release of September's hot inflation data. The S&P 500 dropped 2.3% in the minutes after the

opening bell. From there, however, it bounced hard off the 3,500 level and rallied 4.8% over the next two hours.

The index hit a one-year low before closing at a five-day high, up 2.6%.

This made yesterday the fifth largest intraday reversal off a low in the history of the index, moving 5.6% from bottom to top. Sometimes when looking at markets,

there is a clear narrative driver for price action that we can easily point to, correctly or

incorrectly. Other times, the move is pretty detached from fundamentals or narrative or market

sentiment, and this seems to have been the latter. Lizanne Saunders, the chief investment strategist for Charles Schwab, had perhaps the simplest

version of an explanation.

Quote, it's the nature of the beast these days where sometimes you get these intraday

...