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.

What's going on, guys? It is Tuesday, January 14th, and today we are talking about Bitcoin and how it's faring as macro unravels.

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breakdown pod. Hello, friends. Well, as ever with this show, between the time I started preparing

it and when I'm actually recording it, Bitcoin recovered mightily. At the time of recording,

we are back up over 96,000, up nearly 5% on the day. And this is, of course, the risk of doing any sort of show about

price action. However, why I think it's still relevant is that really the story isn't price

action here, at least not really. We're just using that as a lens through which to discuss

the larger macro environment, which does, I think, have an impact on how things are going to

shake out for Bitcoin and other risk assets in the coming period. So let's go back to Monday morning where Bitcoin collapsed,

frankly, in the face of tough macro conditions. After seeing a peak of 95,000 late on Sunday night,

Bitcoin drew all the way down to below 90,000 for the first time in almost two months.

The violent move saw a series of liquidation

cascades as leveraged traders were forced out of their positions. And as intimated, while the

price action was stark, it definitely appears to have less to do with Bitcoin than with the overarching

macro conditions. So what is going on? Monday morning saw the dollar index spike up to 110,

a fresh two-year high during this period

of abnormal dollar strength. The U.S. 10-year treasury bond yield reached a new multi-year high of

4.8 percent, and the S&P 500 has now lost 2.3 percent in the past week in the latest

...