It is headed for a record seventh consecutive weekly loss. Despite seeing a bit of a bounce back today, it is above the 30 000 handle. It has been a brutal week for crypto, broadly, to put it mildly, with investors rushing for the exits following the collapse of stable cointerra lets bring in mike mcglone. He is bloomberg intelligence, commodity, strategist, hes here to discuss all of the moves that have happened this week. Mike, let me just get your thoughts: where are we right now in this space? Well, i think the thing to remember on bitcoins. First of all, you mentioned 30 000 theres, very good support, but its going down with the ebbing tide with all risk assets. What happened to the s p 500, this this week it finally got below 4 000 for a while its steadying around 4 000.. But for the first time in about two years, both two years, both bitcoin and the s p 500 came back to their hundred week. Moving averages and the question i like to point out for looking forward in the future: do we expect this nasa and technology asset to stop outperforming the the broad markets and, i think thats the opposite? I think youre going to see more responsive buying below the market in bitcoin and selling above in the stock market and thats playing out. But you have to remember the asset that went up the most the last five ten years is going to come back as a fed.

You know hammers down and takes away the punch bowl, but its more likely to come out ahead and i think thats what youre, seeing this week, hey mike its brian chung here great to chat with you, you know lets take away the technical analysis and kind of The numbers for a brief moment, you have a lot of the commentary around the action that weve seen in the crypto space last two weeks. As you know, perhaps is this the lehman moment? We know that luna and terra is not necessarily systemic to uh, especially not the financial system, but maybe not even to the stablecoin space, but look when you see tether, which is supposed to be keeping that dollar peg blink yesterday in the morning, thats got to give You some concern doesnt it yeah thats the lesson ive learned about tether brian is anytime. You see knockbacks on tether, its usually a short term blip in the market and bitcoin in a long term enduring bottom. The most the best example was 2018 or 19 april. When new york attorney general came down and tether, it broke the buck for a little while bitcoin hovered around 5 000, and then it established an enduring support. I see similar things happening around 30 000.. The key thing to remember about heather its the most widely traded crypto asset on the planet. It typically doubles the volume on a normal day that bitcoin does, and why, because the world has found a better way for that buggy.

Its got a car now in terms of transacting dollars, globally, yes, its imperfect and yes, what were find out is that you know kind of the tide went out with finding out whos wearing clothes and kryptos is were purging. Some of those speculative accesses, most notably in terra usd, which was an algorithmic um, stable coin – i like to call them crypto dollars because they all track the dollar but whats its. The point is what comes out ahead from this, and this is typically what happens in this space. You see these pretty significant flushes its a new technology. You purge them a little bit and then you reset, i think, were going to get towards that point of reset. Now bitcoin is a key focus and remember what bitcoin is doing its well on its way becoming global digital collateral and its going back to a good support within and enduring bull market. I look at his investor. What should i want to do here? Probably, i think were seeing investors being responsible mike, you know, i know with bitcoin. Weve talked so much about so many different correlations and they never seem to really stick but, but i will say at least in this latest sell off that weve been seeing. It has moved right in tandem with the equity space. What do you think that says who about number one whos whos exiting? Is it really just about an overall risk off sentiment, or is this something more clearly the former overall risk off? The key thing for me at the beginning here is dont fight the fed the fed is selling calls.

They need risk assets to go down to reduce the ability for people to buy stuff, for inflation, wont, go down and some of the riskiest most effective assets were cryptos. So what were doing is finally purging the things like the dog coins and the shebollinos. That was overdue and then were coming back to whats, really billing in infrastructure and whats really happening to me. Thats whats happening with bitcoin and ethereum. So you hear about things like nfts and tokenization thats all being made happen by a theorem. Now theorems come back to good support around two thousand bitcoins back to good sport. Around thirty thousand, i think the key thing to remember if the stock market keeps going down which is likely which, because the fed needs to go down and reduce um about inflation, bitcoin and theorem will go down, but theyll come out ahead and the key factor id Like to point out is overall, the volatility of these nascent crypto assets. Most notably bitcoin has continued the decline versus the stock market. Thats whats happened with amazon when it first came out. You know remember its volatility in 2009 was about the same as bitcoin is now and look where it is now to me thats what investors are looking forward to the future is. Do you really want to miss out on this revolution and thats? What i see happening? A little bit of selling offers in the stock market and bids below, and things like bitcoin in this area, mike always good to have you on happy friday.