Welcome to the ‘We Just Don’t Know’ Economy

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 21 August 2022

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

This episode is sponsored by Nexo.io, Chainalysis and FTX US. On this edition of the “Weekly Recap,” NLW looks at why markets went down on high European inflation data, and why market signals in general are pointing in multiple directions at once. - Nexo is a security-first platform where you can buy, exchange and borrow against your crypto. The company safeguards your crypto by relying on five key fundamentals including real-time auditing and insurance on custodial assets. Learn more at nexo.io. - Chainalysis is the blockchain data platform. We provide data, software, services and research to government agencies, exchanges, financial institutions and insurance and cybersecurity companies. Our data powers investigation, compliance and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases. For more information, visit www.chainalysis.com. - 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. - I.D.E.A.S. 2022 by CoinDesk facilitates capital flow and market growth by connecting the digital economy with traditional finance through the presenter’s mainstage, capital allocation meeting rooms and sponsor expo floor. Use code BREAKDOWN20 for 20% off the General Pass. Learn more and register at coindesk.com/ideas. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is “The Now” by Aaron Sprinkle and “The Life We Had” by Moments. Image credit: Nuthawut Somsuk/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.2	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:14.8	The breakdown is sponsored by nexo.io, chain aliasis, and FtX, and produced and distributed by CoinDesk.
0:22.8	What's going on, guys? It is Saturday, August 20th, and that means it's time for the weekly recap.
0:28.6	Now, before we get into that recap, if you are enjoying the breakdown, please go subscribe to it,
0:33.3	give it a rating, give it a review, or if you want to dive deeper into the conversation,
0:37.2	come join us on the breakers discord. You can find a link in the show notes or go to bit.ly slash
0:41.8	breakdown pod. Also, a disclosure as always. In addition to them being a sponsor of the show, I also
0:47.1	work with FTX. Now today on the weekly recap, we're talking about what I'm calling the
0:53.8	we just don't Know Economy.
0:56.7	But where we start is Friday morning. Crypto market participants woke up Friday to an absolute
1:02.7	bloodbath. Bitcoin plunged around 7 or 8% overnight, effectively completely reversing
1:09.0	the gains of the last few weeks that happened in the wake
1:11.6	of U.S. inflation coming in lower than economists expected. At the time of recording, Bitcoin is hovering
1:16.8	around 21,500, its lowest price since July 27th, while Eath is around 1,700. It's the biggest
1:23.5	single-day drop in percentage terms in two months, and caps, with a vengeance,
1:28.3	what had been a slight but consistent five-day slide. Before this morning, that slide had
1:33.6	been largely attributable to markets cooling their heels after perhaps getting a little
1:38.3	over-exuberant in the wake of the U.S. inflation print. In other words, markets were very
1:43.6	relieved to get 8.5% year-over-year inflation instead of the 8.S. inflation print. In other words, markets were very relieved to get 8.5% year-over-year
1:46.5	inflation instead of the 8.7% that was anticipated. The fact that there was 0% month-over-month
1:52.7	inflation growth was even more delectable. But the excitement around that has started to fade.
	...

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