WEBVTT - Are We Headed For Another ‘Crypto Winter’?

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<v Speaker 1>Were you here for thanksgoing?

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<v Speaker 2>I was working.

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<v Speaker 1>You're working naturally giving all of this markets man Viz.

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<v Speaker 1>Bloomberg News Executive editor Stacy Marie Schmaiel worked through the

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<v Speaker 1>holiday last week. A lot of her work in the

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<v Speaker 1>newsroom involves tracking one of the most volatile markets around, crypto,

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<v Speaker 1>and the last few weeks have been a roller coaster.

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<v Speaker 3>The market is eyeing quite nervously. The lows that we

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<v Speaker 3>saw over the past couple of weeks pretty pronounced selov

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<v Speaker 3>in bitcoin yesterday, today's stabilizing.

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<v Speaker 1>Back in October, bitcoin reached a record high Bitcoin more

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<v Speaker 1>than doubling in value over the past year.

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<v Speaker 3>Look at this, you're to date of thirty percent, hitting

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<v Speaker 3>a fresh record.

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<v Speaker 1>But just a few weeks later, its price had plunged,

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<v Speaker 1>taking out over one trillion dollars in crypto assets along

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<v Speaker 1>with it. On Tuesday, it rallied. It was back above

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<v Speaker 1>ninety thousand dollars. That's left investors and analysts wondering what

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<v Speaker 1>to make of these dramatic swings.

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<v Speaker 4>I don't think the pain is over for crypto.

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<v Speaker 2>There's a selloff, there's always the risk that it accelerates

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<v Speaker 2>beyond what a reasonable person might expect. Or when there

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<v Speaker 2>is a sudden recovery and people are like, why is

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<v Speaker 2>that happening? Nobody really has a good answer.

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<v Speaker 1>So was the latest crypto selloff a wake up call

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<v Speaker 1>or just par for the chorus for a volatile market?

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<v Speaker 1>I'm David Gera and this is the big take from

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<v Speaker 1>Bloomberg News today. On the show What just happened to

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<v Speaker 1>the Crypto Market and What can it tell us about

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<v Speaker 1>Crypto's future? Stacy Marie Ishmael has been tracking the crypto

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<v Speaker 1>market swings closely. Bitcoin is down almost thirty percent from

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<v Speaker 1>its October high, but she says it's important to put

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<v Speaker 1>that in context.

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<v Speaker 2>We're only really down like ten percent on the year, which,

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<v Speaker 2>depending on how you look at the chart, some people

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<v Speaker 2>are either having a very good year or a very

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<v Speaker 2>bad one, and that really, to me is part of

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<v Speaker 2>the story of this asset class. Right. Cryptocurrencies are volatile

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<v Speaker 2>by nature. They have long been perceived as a risk asset.

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<v Speaker 2>They trade in ways that have been described as chaotic.

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<v Speaker 2>They don't have kind of necessarily predictable patterns because people

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<v Speaker 2>aren't able to do like corporate cash flow analysis or

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<v Speaker 2>whatever those things are. So when there's a sell off,

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<v Speaker 2>there's always the risk that it accelerates beyond what a

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<v Speaker 2>reasonable person might expect, or when there is a sudden

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<v Speaker 2>recovery and people are like, why is that happening? Nobody

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<v Speaker 2>really has a good answer, And that's pretty much what's

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<v Speaker 2>been going on for the past two months.

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<v Speaker 1>You and your team have been watching all of this unfold.

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<v Speaker 1>It ruined your Thanksgiving holiday. At this point, what can

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<v Speaker 1>you tell us about why it happened, Why we saw

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<v Speaker 1>bitcoin and other cryptocurrencies fall from those sides of just

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<v Speaker 1>a couple weeks ago.

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<v Speaker 2>I can tell you what people are telling us. Okay,

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<v Speaker 2>so the first thing is going back to this idea

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<v Speaker 2>of bitcoin being a risk asset. What are the things

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<v Speaker 2>that are supportive of risk assets? A low interest rate environment,

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<v Speaker 2>you know, the idea that policies will be accommodating to

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<v Speaker 2>people having lots of money to spend on things. And

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<v Speaker 2>the very second you have a concern that, say, the

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<v Speaker 2>Fed is not going to lower interest rates as quickly

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<v Speaker 2>as people hope they might, then folks start to get

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<v Speaker 2>a little bit more conservative about their positioning. A couple

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<v Speaker 2>of days ago, there was some comments from the Bank

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<v Speaker 2>of Japan suggesting that interest rates there might be increasing,

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<v Speaker 2>and that had some spillover effect. There's also people who

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<v Speaker 2>associate crypto in general, will bitcoin very specifically with the

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<v Speaker 2>fortunes of the Trump White House and its policies are

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<v Speaker 2>on crypto because Trump was when he was inaugurated, you know,

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<v Speaker 2>some of his very first executive orders were perceived as

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<v Speaker 2>being very supportive of cryptocurrencies.

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<v Speaker 4>I pledged that we would bring back American liberty and

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<v Speaker 4>leadership and make the United States to crypto capital of

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<v Speaker 4>the world, and that's what we've done.

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<v Speaker 2>There was this idea of establishing a bitcoin reserve. If

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<v Speaker 2>you talk to various people in the industry, they might

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<v Speaker 2>say things like, well, you know, legislation hasn't moved as

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<v Speaker 2>quickly as we would like, we're not seeing as many

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<v Speaker 2>changes as we want, or yes, we got those things,

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<v Speaker 2>but you know what else is going to come? Like,

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<v Speaker 2>is there anything else that they're going to do? So

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<v Speaker 2>all in all, it's been an environment in which there

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<v Speaker 2>are not a lot of reasons for people to buy

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<v Speaker 2>with high conviction, but there have been a lot of

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<v Speaker 2>reasons for people to sell.

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<v Speaker 1>You having lived through downturns in the crypto market before,

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<v Speaker 1>does it feel familiar? Does it feel different. We've know

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<v Speaker 1>that crypto winter from a couple of years back. Does

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<v Speaker 1>it feel eaerily similar?

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<v Speaker 2>The former CEO of failed crypto firm FTX, Sam Bankman Freed,

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<v Speaker 2>has been arrested in the Bahamas at the request of

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<v Speaker 2>the US government. Just how long is.

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<v Speaker 3>Winter going to ask and how cold is it going

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<v Speaker 3>to get? Like how much lower is Bigfooring going to go?

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<v Speaker 2>Well, nobody has filed for bankruptcy, which is a big,

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<v Speaker 2>big difference from that time around. And we haven't seen

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<v Speaker 2>anybody arrested in the Bahamas and you know, taken taken

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<v Speaker 2>into custody. So there are very many elements of this

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<v Speaker 2>that are different. And in addition to a much more

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<v Speaker 2>shall we say, explicitly constructive policy environment, we also have

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<v Speaker 2>the fact that the market structure is different. You know,

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<v Speaker 2>cryptoetfs didn't exist in twenty twenty two, and to an

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<v Speaker 2>extent they have provided almost an institutional floor because so

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<v Speaker 2>many retail investors are interested in these things, they have

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<v Speaker 2>them in their four oh one case. We have on

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<v Speaker 2>the other side this idea of the digital Ashet Treasury Company,

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<v Speaker 2>which kind of existed with micro strategy now called Strategy,

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<v Speaker 2>but now you have various other companies that used to

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<v Speaker 2>be like e commerce firms saying we want to pivot

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<v Speaker 2>and hold bitcoin as our balance sheet strategy. So I

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<v Speaker 2>think it's hard to draw an immediate like for like

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<v Speaker 2>comparison to what was happening in twenty twenty two. But

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<v Speaker 2>I would say until we start to see like real,

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<v Speaker 2>this feeling of panic selling as opposed to this kind

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<v Speaker 2>of steady burn, then we're still in a very different environment.

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<v Speaker 1>Let me stick with those ETFs because it sort of

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<v Speaker 1>lent a level of legitimacy to this market that didn't

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<v Speaker 1>have before. Beyond that sort of how has it shaped

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<v Speaker 1>the way that this market reacts? Having what about a

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<v Speaker 1>dozen of these ETFs, now more than that.

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<v Speaker 2>Forgive me so many more. Our analysts and Bloomberg Intelligence

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<v Speaker 2>have a very long spreadsheets of all the different out

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<v Speaker 2>style ETFs. Yeah, there's Bitcoin, but there's also like doge

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<v Speaker 2>coin and ripple and other things.

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<v Speaker 1>Do they buffet the market?

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<v Speaker 2>Not all of them are very popular. So you know,

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<v Speaker 2>the biggest one by far, which does have a very

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<v Speaker 2>significant number of assets is ibit, which is from black Rock.

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<v Speaker 2>But one of the things that ETFs have done is

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<v Speaker 2>introduced a wider range of people to the idea of

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<v Speaker 2>having exposure to crypto as an asset class, which is

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<v Speaker 2>just a different way of thinking about size. Right. Yeah,

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<v Speaker 2>you still have to be the kind of person who

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<v Speaker 2>thinks about what you want near four oh one k

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<v Speaker 2>and haves like some contact with the financial advisor generally speaking.

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<v Speaker 2>But you know, if you didn't want to have to

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<v Speaker 2>figure out like how to set up a crypotal wallet,

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<v Speaker 2>how to buy bitcoin directly, what's the stable coin? Now

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<v Speaker 2>you can just be like, oh, this can diversify my portfolio.

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<v Speaker 2>And that was really seen by the industry as a

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<v Speaker 2>huge step in that legitimacy that you're describing, on.

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<v Speaker 1>That pathway to normalization or legitimization. A Vanguard, second largest

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<v Speaker 1>asset manager, this week announcing that its customers can trade

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<v Speaker 1>ATF's mutual funds that crypto heavy on their platform. How

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<v Speaker 1>big a moment is is that in the evolution of

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<v Speaker 1>this asset class.

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<v Speaker 2>From a narrative perspective, enormous from a didn't have any

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<v Speaker 2>major consequences in the crypto price like kind of I

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<v Speaker 2>will say that, you know, they have been the last

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<v Speaker 2>really big holdout. A lot of people have been just

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<v Speaker 2>waiting for the moment in which they would say yes.

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<v Speaker 2>And of course this comes after, you know, they have

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<v Speaker 2>a new CEO who comes from the world of crypto

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<v Speaker 2>ETFs was like part of the team responsible for driving

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<v Speaker 2>forward ibit that we just mentioned. So I think that

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<v Speaker 2>was kind of one of those things where the news

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<v Speaker 2>was not so much that it happened, just that it

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<v Speaker 2>happened this week because it was one of those things

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<v Speaker 2>that people were very much expecting.

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<v Speaker 1>This is a risk asset class. Risky asset class, I

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<v Speaker 1>should say as well, and we've seen what nineteen billion

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<v Speaker 1>dollars of leverage bets wiped out over the course of

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<v Speaker 1>this sell off. Explain exactly what that means instic terms.

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<v Speaker 2>Imagine you could, you know, take a position on something,

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<v Speaker 2>but you do it by borrowing money. So you're like, oh,

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<v Speaker 2>I want to make a five dollar bet, so I'm

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<v Speaker 2>going to borrow five dollars, So you don't actually have

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<v Speaker 2>five dollars. You've borrowed five dollars, and if that bet

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<v Speaker 2>goes in your favor like fantastic, like now you have

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<v Speaker 2>like five, possibly ten dollars depending on how it structured.

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<v Speaker 2>If that bet moves against you, now you owe money

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<v Speaker 2>that you didn't have any first place. Don't come for me.

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<v Speaker 2>That's a wild verse implications of how these things work.

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<v Speaker 2>But generally, it's this idea of people putting up capital

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<v Speaker 2>that is, in fact more than they can necessarily comfortably

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<v Speaker 2>repay because they were expecting prices to move in a

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<v Speaker 2>particular direction and actually those prices moved against them.

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<v Speaker 1>What does that tell you about this market? That there

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<v Speaker 1>is a there has been a hearty appetite for risk

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<v Speaker 1>of confidence that it's yeah.

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<v Speaker 2>I mean, it just goes back to that idea of

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<v Speaker 2>risk assets, right, And for a good chunk of this year,

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<v Speaker 2>it was like the narrative was like, you know, Crypto's back,

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<v Speaker 2>Bitcoin is back. The entire environment is supportive of it.

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<v Speaker 2>So the shift in October where we saw what we

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<v Speaker 2>thought was like initially kind of a flash crash because

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<v Speaker 2>it was very sudden and very aggressive, but the market

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<v Speaker 2>hasn't been able to come back from that, and that

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<v Speaker 2>is I think indicative that there might be some repricing

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<v Speaker 2>towards a lower level. Right, So if the bulls we're

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<v Speaker 2>expecting we enter twenty twenty six at anywhere from one

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<v Speaker 2>fifty to one million, depending on how ambitious you are

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<v Speaker 2>we're you know, we're kind of closer to ninety right now,

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<v Speaker 2>and that may be where we end December.

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<v Speaker 1>I think there's a tendency to focus on Bitcoin, the

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<v Speaker 1>og cryptoer the biggest. Has the selloff been across the

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<v Speaker 1>board all cryptocurrencies wrapped up in it, or if there

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<v Speaker 1>be any standouts that haven't been affected.

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<v Speaker 2>I wouldn't say anybody hasn't been affected. I will say

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<v Speaker 2>some things have been hit harder than others. So at

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<v Speaker 2>the very very risky, highly speculative end of the market,

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<v Speaker 2>you have like the meme coins, right, which are in

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<v Speaker 2>the name it's like based around memes. But there have

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<v Speaker 2>been two very high profile meme coin launches this year,

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<v Speaker 2>one named after the President and one named after the

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<v Speaker 2>first Lady, and those have been hammered to an extent

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<v Speaker 2>that is in a lot of ways like more intense

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<v Speaker 2>than we've seen in other corners of the market. And

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<v Speaker 2>we've also seen kind of a similar effect on other

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<v Speaker 2>Trump family related crypto properties. Right, We've been tracking the

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<v Speaker 2>decline in the shares of American Bitcoin, which is a

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<v Speaker 2>cryptomning currency associated with Trump, and so it does feel

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<v Speaker 2>like there is something different that is happening with the

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<v Speaker 2>kind of the Trump family crypto portfolio as opposed to

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<v Speaker 2>the wider market.

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<v Speaker 1>Coming up, how Trump and his family continue to influence

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<v Speaker 1>the crypto market, and Stacy, Marie and I dig into

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<v Speaker 1>what the president's attempts to prop up the market could

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<v Speaker 1>mean for its future. It seems like a lot of

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<v Speaker 1>the enthusiasm or wider embrace of crypto was brought about

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<v Speaker 1>by the Trumps and the Trump administration taking a different

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<v Speaker 1>tack toward digital assets.

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<v Speaker 2>A fair way to.

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<v Speaker 4>Say that with today's signing, the future of crypto and

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<v Speaker 4>the crypto industry, the US dollar working together because they

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<v Speaker 4>really are hand in hand, is going to be stronger

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<v Speaker 4>and bigger and better than ever before.

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<v Speaker 1>Can you just explain sort of what that's meant in

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<v Speaker 1>real terms? So we see regulators that are acting maybe

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<v Speaker 1>as muscularly as they did during the Biden administration, but

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<v Speaker 1>beyond that sort of what has that change in approach

0:11:05.640 --> 0:11:07.320
<v Speaker 1>meant for the industry as a whole.

0:11:07.640 --> 0:11:11.480
<v Speaker 2>I think from the industry perspective, sometimes people will say

0:11:11.480 --> 0:11:14.480
<v Speaker 2>it was like, oh, act first, apologize after they're just acting,

0:11:14.480 --> 0:11:16.520
<v Speaker 2>because there isn't even a need to apologize, right, There

0:11:16.800 --> 0:11:20.439
<v Speaker 2>isn't a fear or a concern that someone will launch something,

0:11:20.480 --> 0:11:23.680
<v Speaker 2>do something, try something, and they'll immediately be confronted with

0:11:23.720 --> 0:11:26.000
<v Speaker 2>like a Wells notice or you know, a regulator being

0:11:26.000 --> 0:11:29.320
<v Speaker 2>like just a reminder about prudential regulation. So it certainly

0:11:29.440 --> 0:11:33.280
<v Speaker 2>has liberated I would think the approach of the industry

0:11:33.320 --> 0:11:35.520
<v Speaker 2>in terms of how quickly they want to launch products,

0:11:35.840 --> 0:11:37.439
<v Speaker 2>how risky those products can be. Like one of the

0:11:37.480 --> 0:11:39.400
<v Speaker 2>big things that we certainly sow in twenty twenty five is,

0:11:39.400 --> 0:11:41.240
<v Speaker 2>you know, if you're a crypto company or a fintech

0:11:41.240 --> 0:11:42.800
<v Speaker 2>with any kind of crypto releasing thing, you're like, I

0:11:42.800 --> 0:11:44.559
<v Speaker 2>want to ipo, I want to raise money, I want

0:11:44.600 --> 0:11:46.800
<v Speaker 2>to get engaged in M and A. Because it's like

0:11:47.080 --> 0:11:49.000
<v Speaker 2>this perception was like we have a window. We don't

0:11:49.040 --> 0:11:50.600
<v Speaker 2>know how long this window will be open for, but

0:11:50.600 --> 0:11:51.880
<v Speaker 2>we're going to take full advantage.

0:11:52.000 --> 0:11:56.120
<v Speaker 1>Can you describe the contours of the galaxy of digital

0:11:56.120 --> 0:11:58.840
<v Speaker 1>asset involvement this president and his family have. So you

0:11:58.840 --> 0:12:02.960
<v Speaker 1>mentioned American bitcoin, this bitcoin mining company, the Trump mean coin,

0:12:03.000 --> 0:12:05.840
<v Speaker 1>the Milennia meme coin. How expansive is it.

0:12:05.840 --> 0:12:08.920
<v Speaker 2>It's very wide ranging, and I think that it's also

0:12:09.000 --> 0:12:12.320
<v Speaker 2>not necessarily visible all the time because like Trump media

0:12:12.520 --> 0:12:16.240
<v Speaker 2>for instance, which runs the Truth social platform, the messaging

0:12:16.240 --> 0:12:20.560
<v Speaker 2>platform choice of the President has arrangements with crypto companies,

0:12:20.640 --> 0:12:24.400
<v Speaker 2>famously one called crypto dot com to investigate the launches

0:12:24.440 --> 0:12:27.680
<v Speaker 2>of like crypto related ETFs. They're doing things like potentially

0:12:27.720 --> 0:12:31.199
<v Speaker 2>getting into prediction markets, which is different from crypto proper,

0:12:31.360 --> 0:12:34.800
<v Speaker 2>but I would say ideologically similar in that it's another

0:12:35.080 --> 0:12:39.080
<v Speaker 2>mechanism through which people can take different approaches or entry

0:12:39.080 --> 0:12:42.320
<v Speaker 2>points into the financial system. Then you know, you have

0:12:42.760 --> 0:12:46.040
<v Speaker 2>the World Liberty Financial of which Trump the President is

0:12:46.080 --> 0:12:49.520
<v Speaker 2>listed as like the sort of emeritus member of it,

0:12:49.559 --> 0:12:52.120
<v Speaker 2>but which is largely run day to day by other

0:12:52.240 --> 0:12:55.439
<v Speaker 2>parts of the family, which is working on a stable coin.

0:12:55.760 --> 0:12:59.120
<v Speaker 2>They have described themselves as you know, a DeFi, a

0:12:59.160 --> 0:13:02.560
<v Speaker 2>decentralized financial platform. So I would say, lots of pies,

0:13:02.640 --> 0:13:05.559
<v Speaker 2>lots of fingers in those pies. Not necessarily a lot

0:13:05.600 --> 0:13:08.679
<v Speaker 2>of specific economic activity that we can yet point to,

0:13:08.880 --> 0:13:10.080
<v Speaker 2>but we're certainly paying attention.

0:13:10.600 --> 0:13:13.280
<v Speaker 1>How big a deal is the Trump family as kind

0:13:13.320 --> 0:13:16.320
<v Speaker 1>of a hype machine in this space. So I saw

0:13:16.320 --> 0:13:19.000
<v Speaker 1>that Eric Trump was interviewed by Bloomberg News in November

0:13:19.160 --> 0:13:21.240
<v Speaker 1>commenting on this dip, and he said, what a great

0:13:21.360 --> 0:13:22.880
<v Speaker 1>buying opportunity.

0:13:22.800 --> 0:13:26.280
<v Speaker 3>With crypto comes volatility. Volatility is our friend. Volatility is

0:13:26.320 --> 0:13:28.679
<v Speaker 3>something that should be harnessed, right, and so I think

0:13:28.840 --> 0:13:32.840
<v Speaker 3>bitcoin is going to continue to massively overperform the markets.

0:13:33.320 --> 0:13:36.480
<v Speaker 1>Does that make a difference when you have a family

0:13:36.480 --> 0:13:39.319
<v Speaker 1>that is so heavily invested in this space saying something

0:13:39.360 --> 0:13:41.720
<v Speaker 1>like that, is it encouraging others? Is it effectively encouraging

0:13:41.720 --> 0:13:42.199
<v Speaker 1>other people?

0:13:42.240 --> 0:13:45.160
<v Speaker 2>To the presidents in the family and everyone associated has

0:13:45.200 --> 0:13:47.680
<v Speaker 2>been very explicit repeatedly that there are no conflicts of

0:13:47.720 --> 0:13:50.720
<v Speaker 2>interest to be found anywhere in any of this involvement.

0:13:51.040 --> 0:13:54.640
<v Speaker 2>At the same time, they have been very high profile,

0:13:54.920 --> 0:13:59.800
<v Speaker 2>very visible, very public, explicit exponents of the values of

0:14:00.000 --> 0:14:02.319
<v Speaker 2>from parts of this ecosystem, whether from their own personal

0:14:02.360 --> 0:14:05.000
<v Speaker 2>investments or you know, one or more of the Trump

0:14:05.120 --> 0:14:09.000
<v Speaker 2>sons effectively attending like every cryptoconference of note to talk

0:14:09.080 --> 0:14:11.880
<v Speaker 2>up digital assets. And then you have other high profile

0:14:11.920 --> 0:14:15.960
<v Speaker 2>members of the administration, including Howard Lutnik, who you know,

0:14:16.200 --> 0:14:20.520
<v Speaker 2>his family firm Cantor Fitzgerald very famously was kind of

0:14:20.560 --> 0:14:23.520
<v Speaker 2>I think responsible for the turning point in the perception

0:14:23.560 --> 0:14:26.840
<v Speaker 2>of Tether, the world's largest table coin company, because you know,

0:14:26.920 --> 0:14:29.440
<v Speaker 2>Lutnick came out a couple of years ago and said, like,

0:14:29.840 --> 0:14:31.800
<v Speaker 2>tether has the money that it says it has, and

0:14:31.840 --> 0:14:34.120
<v Speaker 2>that just changed the game entirely for Tether, and they're

0:14:34.160 --> 0:14:36.240
<v Speaker 2>now seeking to raise quite a lot of money at

0:14:36.280 --> 0:14:40.720
<v Speaker 2>a very you know, spacexy open Ai type valuation. So

0:14:41.160 --> 0:14:43.360
<v Speaker 2>I wouldn't say that there is no effect. It's just

0:14:43.400 --> 0:14:45.800
<v Speaker 2>not always that the effect is like as direct as

0:14:45.800 --> 0:14:46.840
<v Speaker 2>folks might make it out to be.

0:14:47.080 --> 0:14:48.640
<v Speaker 1>How do you see these assets in kind of the

0:14:48.640 --> 0:14:50.920
<v Speaker 1>broader sweep? I remember when there was a lot of

0:14:50.960 --> 0:14:54.720
<v Speaker 1>talk about it being an inflation hedge. Now we've kind

0:14:54.720 --> 0:14:57.600
<v Speaker 1>of seen it move in concert with risk your tech stocks.

0:14:58.840 --> 0:15:01.840
<v Speaker 1>What can digital assets tell us about the overall market?

0:15:02.280 --> 0:15:05.880
<v Speaker 2>I will once again tell you what people say. Certainly

0:15:06.000 --> 0:15:09.200
<v Speaker 2>there's an idea that it is an inflation hedge. You know,

0:15:09.240 --> 0:15:12.240
<v Speaker 2>one bitcoin is one bitcoin is the phrase that sometimes use.

0:15:12.840 --> 0:15:15.560
<v Speaker 2>I do think because bitcoin trades twenty four to seven

0:15:15.640 --> 0:15:17.520
<v Speaker 2>and crypto trades twenty four seven, and it's a market

0:15:17.520 --> 0:15:20.240
<v Speaker 2>that's open when other markets are closed, it sometimes acts

0:15:20.280 --> 0:15:23.000
<v Speaker 2>like a future's market, right that if something happens in

0:15:23.040 --> 0:15:25.160
<v Speaker 2>the world that people are either bearish or bullish on,

0:15:25.520 --> 0:15:27.920
<v Speaker 2>we will often see a move in crypto that doesn't

0:15:27.920 --> 0:15:30.400
<v Speaker 2>feel like cryptospecific, but more like, oh, this is open

0:15:30.480 --> 0:15:31.720
<v Speaker 2>and I can trade it. I'm going to do that

0:15:31.960 --> 0:15:33.960
<v Speaker 2>and then other markets catch up. That is absolutely a

0:15:33.960 --> 0:15:36.480
<v Speaker 2>phenomenon that is well established, it's been happening for a while.

0:15:36.640 --> 0:15:38.760
<v Speaker 2>There's real things that are going on there. But I

0:15:38.800 --> 0:15:41.760
<v Speaker 2>do think a third is just this general like risk

0:15:42.160 --> 0:15:45.160
<v Speaker 2>and sentiment barometer, because it's the kind of thing for

0:15:45.200 --> 0:15:47.120
<v Speaker 2>a lot of people where it's not a core part

0:15:47.120 --> 0:15:49.600
<v Speaker 2>of your portfolio. Yes, there are hedge funds that are

0:15:49.720 --> 0:15:52.600
<v Speaker 2>entirely dedicated to digital assets. You can definitely find a

0:15:52.600 --> 0:15:54.800
<v Speaker 2>financial advisor who's like, you're ready, five sure, put all

0:15:54.840 --> 0:15:56.880
<v Speaker 2>your money in bitcoin. That is a thing that exists,

0:15:57.040 --> 0:16:00.720
<v Speaker 2>but for a majority of investment professionals, it's the kind

0:16:00.760 --> 0:16:02.560
<v Speaker 2>of thing where you're like, this is an interesting place

0:16:02.600 --> 0:16:05.360
<v Speaker 2>to diversify, and if the rest of your portfolio is

0:16:05.440 --> 0:16:09.320
<v Speaker 2>underperforming and crypto is doing well, fantastic. But if crypto

0:16:09.400 --> 0:16:11.200
<v Speaker 2>isn't doing well, you might ask, Okay, well should I

0:16:11.240 --> 0:16:13.360
<v Speaker 2>put my money in gold or in silver or something

0:16:13.360 --> 0:16:15.600
<v Speaker 2>else where you might be seeing better and more immediate returns.

0:16:17.000 --> 0:16:20.080
<v Speaker 1>Uniqueness of this space, this asset classes things can turn around.

0:16:19.840 --> 0:16:22.480
<v Speaker 2>Pretty quickly tomorrow, it might be right, we're.

0:16:22.320 --> 0:16:26.040
<v Speaker 1>Seeing Bitcoin climb higher and Cardana and ether. What does

0:16:26.120 --> 0:16:30.160
<v Speaker 1>history tell us about the way rebounds work with cryptocurrencies?

0:16:30.160 --> 0:16:32.480
<v Speaker 1>What makes them stay? What makes it not just an

0:16:32.480 --> 0:16:34.360
<v Speaker 1>anomals blip where we see them going up after a

0:16:34.440 --> 0:16:37.480
<v Speaker 1>huge sell off. What tends to give them staying power?

0:16:37.520 --> 0:16:38.840
<v Speaker 1>And how do you think about that in the context

0:16:38.880 --> 0:16:40.120
<v Speaker 1>of this particular sell off.

0:16:40.680 --> 0:16:42.120
<v Speaker 2>One of the things that I do in the Bloomberg

0:16:42.200 --> 0:16:44.440
<v Speaker 2>terminal is there's a function that lets you like look

0:16:44.440 --> 0:16:47.400
<v Speaker 2>at news events versus prices on a chart, and I

0:16:47.400 --> 0:16:48.880
<v Speaker 2>spend a lot of time staring at that trying to

0:16:48.880 --> 0:16:51.560
<v Speaker 2>figure out, Okay, like what has been driving in crypto.

0:16:51.800 --> 0:16:56.200
<v Speaker 2>And it is true that really significant actions that prop

0:16:56.240 --> 0:16:58.760
<v Speaker 2>up a certain narrative have helped rallies in the past. Right,

0:16:58.840 --> 0:17:02.960
<v Speaker 2>So you know in July of last year, when you know,

0:17:03.040 --> 0:17:06.440
<v Speaker 2>Donald Trump goes to a conference for the bitcoin faithful

0:17:06.480 --> 0:17:08.200
<v Speaker 2>and says like I want to make the United States

0:17:08.280 --> 0:17:11.800
<v Speaker 2>the bitcoin capital of the world, that absolutely precipitated a

0:17:11.920 --> 0:17:14.480
<v Speaker 2>run up that you know kind of peaked for a

0:17:14.480 --> 0:17:17.120
<v Speaker 2>while in January, or you know, going back two years

0:17:17.119 --> 0:17:20.240
<v Speaker 2>when like bitcoin ETFs were approved, or on the other side,

0:17:20.280 --> 0:17:22.920
<v Speaker 2>when Sam Backwinfried got arrested and FTX collapsed and we're like, hah,

0:17:23.000 --> 0:17:26.040
<v Speaker 2>that doesn't seem good. So right now, what's missing is

0:17:26.080 --> 0:17:28.560
<v Speaker 2>this like single thing? So people are like, oh, is

0:17:28.600 --> 0:17:30.920
<v Speaker 2>it going to be the vanguard announcement about ETFs? Is

0:17:30.960 --> 0:17:34.280
<v Speaker 2>it going to be you know, whoever replaces Dero Powers? Yeah,

0:17:34.320 --> 0:17:36.280
<v Speaker 2>And we just haven't seen a big capitalist and we're

0:17:36.280 --> 0:17:38.480
<v Speaker 2>sort of running out of days this year for something

0:17:38.480 --> 0:17:39.240
<v Speaker 2>really big to happen.

0:17:46.840 --> 0:17:49.399
<v Speaker 1>This is the Big Take from Bloomberg News. I'm David Gerat.

0:17:49.600 --> 0:17:51.879
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0:17:51.920 --> 0:17:54.920
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0:17:54.960 --> 0:17:58.480
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0:17:58.520 --> 0:18:00.520
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0:18:00.600 --> 0:18:03.000
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0:18:03.400 --> 0:18:05.199
<v Speaker 1>Thanks for listening. We'll be back tomorrow