The Fed vs. VC: What’s Driving Crypto Short-Term and Long-Term Market Outlook

The Breakdown

Blockworks

Investing, Business

4.8 • 806 Ratings

🗓️ 3 May 2022

⏱️ 18 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, NEAR and FTX US. In the short term, crypto is firmly a part of the larger macro cycle driven by the Fed’s fight against inflation. In the long term, however, there is much evidence that the market downturn won’t be anything like the crypto winter of 2018-2019. NLW explores the funding and events of the past month that tell the story of these two different crypto markets. - Nexo is a secure crypto exchange and crypto lending platform. Buy 40+ hot coins with your bank card in seconds and swap between exclusive pairs for cashback. Earn up to 17% interest on your idle crypto assets and borrow against them for instant liquidity. Simple and secure. Head over to nexo.io and get started now. - 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. - Consensus 2022, the industry’s most influential event, is happening June 9–12 in Austin, Texas. If you’re looking to immerse yourself in the fast-moving world of crypto, Web 3 and NFTs, this is the festival experience for you. Use code BREAKDOWN to get 15% off your pass at www.coindesk.com/consensus2022.

Transcript

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0:00.0	This view that Travis has, that the Fed simply structurally, based on the U.S. debt-to-GDP
0:05.5	ratio and other factors, will not be able to stay in tightening mode for all that long,
0:10.3	is one that's shared with many outside crypto as well as inside it.
0:13.8	If that's right, I think you have to give a lot of credence to this view and the discussion
0:18.3	about what's going to pop most and fastest once another secular
0:22.4	shift happens. Welcome back to The Breakdown with me, NLW. It's a daily podcast on macro,
0:31.0	Bitcoin, and the big picture power shifts remaking our world. The breakdown is sponsored by nexo.io,
0:37.2	near NFTX, and produced and distributed by
0:40.0	CoinDesk. What's going on, guys? It is Monday, May 2nd. Welcome to a new month. Today we're
0:48.8	talking about a tale of two markets and why things are looking really different short-term versus
0:54.0	long-term. Before we
0:55.5	get into that, however, if you are enjoying the breakdown, please go subscribe to it, give it a rating,
1:00.5	give it a review, or if you want to get deeper into the conversation, come join us on the
1:05.5	Breakers Discord. You can find a link in the show notes or go to bit.le. That's L.Y slash breakdown pod.
1:12.3	Finally, a disclosure as always. In addition to them being a sponsor of the show, I also work with FTX.
1:19.1	Now, as I was prepping this show, the obvious thing from over the weekend is the other side land and FT sale from Yuga Labs.
1:30.1	A big chunk of the Web3 and Metaverse space was paying attention to this. All 55,000 other deed land NFTs sold out within a few hours.
1:36.6	The mint price ended up being 305 ape coin or about $5,800 at the time of the mint. In total,
1:43.5	it brought in 16.7 million ape coin, making it worth
1:46.9	about $317 million and making it the biggest NFT mint of all time. It also created a total
1:54.7	shi-show. There was effectively a gas war, which ended up resulting in $172 million worth of transaction fees.
2:02.6	And already, emotions were running high. And then they tweeted, we're sorry for turning off
	...

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