BREAKDOWN: Why Bitcoin Crashed
CoinDesk Podcast Network
CoinDesk
4.8 • 689 Ratings
🗓️ 6 December 2021
⏱️ 13 minutes
🧾️ Download transcript
Summary
The weekend saw more than $2.5 billion in liquidations.
This episode is sponsored by NYDIG.
Today on “The Breakdown,” NLW looks at the dramatic move downward in the crypto markets that started late Friday night U.S. time. He looks at both market structure factors such as low liquidity and thin weekend order books as well as macro factors including, insecurity around the new Omicron variant as well as a tightening Fed policy.
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NYDIG, the institutional-grade platform for bitcoin, is making it possible for thousands of banks who have trusted relationships with hundreds of millions of customers, to offer Bitcoin. Learn more at NYDIG.com/NLW.
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“The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Dark Crazed Cap” by Isaac Joel. Image credit: iNueng/iStock/Getty Images Plus, modified by CoinDesk.
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Transcript
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| 0:00.0 | We're talking about an asset that's going to move in certain ways in the short term based on |
| 0:03.9 | an ever-setting change of stimuli that is evolving as the asset matures. |
| 0:07.9 | But then we're also talking about fundamentals. |
| 0:10.4 | And fundamentals with Bitcoin involve a huge number of things. |
| 0:13.0 | They involve belief, conviction. |
| 0:15.0 | They involve the number of people who have come into the space. |
| 0:17.8 | Those forces shaped the long term of Bitcoin's market cycle and are ultimately the |
| 0:21.2 | ones that matter more. However, that doesn't mean there's not going to be a lot of volatility |
| 0:24.9 | along the way. Welcome back to The Breakdown with me, NLW. It's a daily podcast on macro, |
| 0:33.3 | Bitcoin, and the big picture power shifts remaking our world. |
| 0:42.8 | The breakdown is sponsored by Nidig and produced and distributed by CoinDesk. |
| 0:50.2 | What's going on, guys? It is Monday, December 6th, and boy, howdy, you know exactly what we are talking about today. Now, if you were like me, you went to bed on Friday night, |
| 0:54.6 | not concerned about the markets at all, having a good holiday-themed weekend full of friends and |
| 1:00.4 | family, and then woke up to horror and bloodshed and red all the way down. At around |
| 1:07.0 | 1150 Eastern time on Friday night, Bitcoin started breaking down from around 52,000. |
| 1:14.3 | It happened in three small liquidation cascades, followed by a final flush that got all the |
| 1:19.7 | way down to 42,000 on most exchanges, although on some exchanges it got down even lower. |
| 1:26.6 | Now, there was a rapid fill back up to the 46,000 to |
| 1:29.9 | 48,000 range, and Bitcoin is currently sitting at 49,000, but still, this was a major move. We're |
| 1:36.0 | talking 17% in a couple of hours, down $10,000. And of course, people were watching this happen in |
| 1:43.7 | real time. Dylan Leclair tweeted |
| 1:45.9 | Bitcoin just saw $100 million plus worth of long liquidations in a 10-minute time span. Haven't |
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