Why Bitcoin and Crypto Are Crashing

The Breakdown

Blockworks

Investing, Business

4.8 • 806 Ratings

🗓️ 7 January 2022

⏱️ 19 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

This episode is sponsored by Nexo, Abra and FTX US. Today on “The Breakdown,” NLW looks at one of the most important relationships in economics: the relationship between Fed statements and market actions. With bitcoin cratering under $43,000 NLW explores: The Fed’s relationship with markets in general Bitcoin’s relationship with equities FinTwit and Crypto Twitter’s reaction to the dip Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW - Nexo is a powerful, all-in-one crypto platform where you can securely store your crypto. Invest, borrow, exchange and earn up to 17% APR on Bitcoin and 20+ other top coins. Insured for $375M. Audited in real-time by Armanino. Rated excellent on Trustpilot. Get started today at nexo.io. - Abra is proud to sponsor The Breakdown. Join 1M+ users and Conquer Crypto with Abra, a simple and secure app where you can trade 110+ cryptocurrencies, get 0% interest loans using crypto as collateral, and earn interest with up to 14% APY on stablecoins and 8.15% APY on Bitcoin. Visit Abra.com to get started. - 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 and Michele Musso, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Time” by OBOY. Image credit: Bloomberg/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

Click on a timestamp to play from that location

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.
0:14.9	The breakdown is sponsored by nexo.io, Abra, and FTX, and produced and distributed by CoinDesk.
0:23.7	What's going on, guys? It is Thursday, January 6th. Welcome back to The Breakdown.
0:28.2	If you're enjoying the show, give it five stars, leave a rating, or join the Discord community.
0:34.1	It's been growing very quickly recently. There's a lot more discussions going on. You can find that
0:38.6	address in the show notes, or you can go to bit.ly slash breakdown pod, bitly slash breakdown pod.
0:46.4	Also, as always, as they're now a sponsor, I do marketing at FTX, so that is a disclosure.
0:52.1	So to today's topic, just a few days in, and we've got our first big
0:57.6	crypto macro Fed show. The markets have been brutal for the last 24 hours, but hopefully this show
1:04.5	helps you put them in context. So let's do a little primer on the Fed and markets in crypto,
1:09.9	just for those of you who might be
1:11.2	joining us for the first time or who are still new in this journey.
1:15.1	So, the Fed's relationship with markets, if you can't already tell, it's a little Pavlovian,
1:20.8	right?
1:21.4	When the Fed signals cheap money, lower interest rates, more support in terms of asset purchases, more liquidity.
1:28.9	Financial market actors respond positively. And part of what the accumulation of that is,
1:34.8	is that they feel like they can take more risk. That benefits all risk assets, of course,
1:40.1	but it certainly benefits the riskiest the most because some additional number of actors or
1:44.6	percentage of the market feels like they can move even farther out on the risk spectrum.
1:49.7	Indeed, in the extreme, they feel like they have to.
1:52.7	This is sort of the story of the last, I don't know, 15 years or so in market history.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Blockworks, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Blockworks and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.