How Much of the Market Meltdown Is Macro vs. Crypto Specific?

The Breakdown

Blockworks

Business, Investing

4.8 • 806 Ratings

🗓️ 21 June 2022

⏱️ 18 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, NEAR and FTX US. The crypto market just went through one of its most turbulent and brutal weekends in recent memory. In today’s episode, NLW looks at how much the broader downturn as well as these more recent moves are being driven by the crypto specific factors such as Terra, Celsius and Three Arrows Capital, versus being just part of a larger macroeconomic re-alignment. - Nexo is an all-in-one platform where you can buy crypto with a bank card and earn up to 16% interest on your assets. On the platform you can also swap 300+ market pairs and borrow against your crypto from 0% APR. Sign up at nexo.io by June 30 and receive up to $150 in BTC. - NEAR is a blockchain for a world reimagined. Through simple, secure, and scalable technology, NEAR empowers millions to invent and explore new experiences. Business, creativity, and community are being reimagined for a more sustainable and inclusive future. Find out more at NEAR.org. - FTX US is the safe, regulated way to buy Bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - “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. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsors is “Catnip” by Famous Cats and “I Don't Know How To Explain It” by Aaron Sprinkle. Image credit: Leonid studio/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	The takeaway from all of this is quite clearly a lot of what's happening in the crypto markets
0:05.5	right now is the specific byproduct of things that happened in crypto during the bull market.
0:11.7	Excess leverage, poor due diligence, institutional opacity.
0:16.2	But even acknowledging that and acknowledging that we're likely not through it yet,
0:21.6	I still believe that we have to put this in the larger macro context.
0:26.4	Welcome back to The Breakdown with me, NLW.
0:30.6	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:36.4	The breakdown is sponsored by nexo.io, near NFTX,
0:40.0	and produced and distributed by CoinDesk.
0:44.3	What's going on, guys?
0:45.3	It is Monday, June 20th,
0:47.6	and today we are asking the question about how much this brutal market meltdown
0:52.7	is about the larger macro environment versus something
0:56.0	specific to the crypto industry. Before we get into that, however, if you are enjoying the breakdown,
1:01.7	please go subscribe to it, give it a rating, give it a review, or if you want to join the conversation,
1:07.0	come check out the breakers discord. You can find a link in the show notes or go to bit.L.Y
1:11.9	slash breakdown pod. Also, a disclosure, as always, in addition to them being a sponsor of the show,
1:17.5	I also work with FTX. So, this weekend, a massive, massive psychological line was breached.
1:25.6	Bitcoin fell under 20K and Eath fell under $1,000. And by the way,
1:31.8	Bitcoin didn't just fall to under 20K. It went way under, going as low as 17,600. What results, I think,
1:40.0	is an inflection point in our discussion of market cycle, and certainly it has for the first time
1:44.6	in the last few months brought out a round of the This is doomed entirely style critics.
	...

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