The meltdown in cryptocurrencies is raising alarm bells about the future of digital assets, or is it?

I'm Allison Nathan, and this is exchanges at Goldman Sachs. Ferees over soaring prices and slowing economic growth have sent investors fleeing from risk assets, notably

crypto currencies. To help us understand the drivers, evolution and the outlook for crypto and

the broader digital assets ecosystem.

I'm sitting down with Matthew McDermott,

global head of digital assets at Goldman Sachs,

to discuss the evolution and future of the space.

Matt, welcome back to the program.

Thank you for having me.

So crypto assets are notoriously volatile.

We all know that, that last week was especially wild.

Even amid the immense volatility we saw across assets we did see crypto assets underperforming.

So what do you make of this underperformance?

You know, it certainly was a wild week. That's one thing is certain.

What we need to remember though, this is still kind of an emerging asset class

with a large number of retail participants. So I think everyone's aware of the volatility in this marketplace.

So seeing moves like this in an environment doesn't come as a huge surprise, but to your point,

crypto definitely highlighted it's more risk on correlation in the way it behaved last week,

and perhaps a little less than the

inflationary hedge that has been much muted across you know the media previously.

The move so far has been correlated to the broader macro market moves and I think no asset class that certainly has a

discount of cash flow has escaped the stress implied by the inflation of pressures.

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