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 Wednesday, November 15th, and today we are talking about a decoupling.

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All right, friends, well, we are picking up right where we left off yesterday, which was, of course,

that cold inflation print that had such a dramatic impact on the stock market.

Yes, the S&P 500 rallied 1.9% while the NASDAQ notched a 2.4% gain, closing in on year-to-date highs. In other words,

stocks responded well to news that inflation was continuing to moderate and that the Fed's hiking cycle had likely come to an end. Crypto markets, however, not so much. Bitcoin plunged

below $35,000 for the first time this week. Now, although it recovered slightly into the evening,

the 4%

drawdown was still painful for bullish traders. Ethereum shared a similar fate falling by 6%

and dropping below $2,000. That pain was shared broadly across the entire crypto market,

with the total market cap retracing by 4.6% in one swift move. Now, some of this retraced

overnight, but the volatile price

swing seemed to have spoken to how overextended the recent rally had become. Now, as is wont

to happen, the gigantic price plunge forced a huge liquidation of long positions. Bullish

leverage traders were flushed out of over $300 million worth of positions, marking the

largest long liquidation in three months. This plunge in crypto prices

stood in stark comparison to traditional markets. Bonds and stocks both rallied hard putting in

one of the most impressive single-day gains so far this year for a traditional 60-40 portfolio.

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