Kate, rooney crypto markets are making a comeback today, after a volatile weekend by noon, eastern bitcoin was worth around 21 000 up from the lows of about 18 000 on saturday, ether meanwhile rose to just under 1200 and polygon traded around 44 cents lets talk about some Of the top stories first crypto lending firm celsius, the company behind much of the crypto drama last week is asking customers to give it more time to fix its withdrawals. The company said it needed more time to stabilize liquidity and operations after it halted some transactions. Last week, due to quote extreme market conditions in a blog post, the company said it would continue to work with regulators and officials to quote find a resolution. Next internet infrastructure business cloudflare suffered an outage this morning that took down several crypto exchanges with it. Users of ftx, bitfinex and other exchanges were met with server errors, crypto sites, werent alone, though discord doordash shopify all facing slower response times before cloudflare fixed the issue around two hours later. Finally, despite the wild sell off in crypto in recent days, many bitcoin holders are still in the green data from glasnote found that more than 50 percent of wallets are still worth more than when they bought bitcoin. But the good news may not last as multiple crypto analysts tell cnbc that the latest crash wasnt deep enough to find a bottom for our main story. Today, crypto worlds, tinea mckeel spoke to jeff dorman of arca about last weeks crash bitcoin holders profitability and whether the sell off will continue.

How bad was the sell off last week? Historically speaking sure? Yes, its funny, you jump right into crypto winter im, not even sure what that means. Even having been in this space professionally for five years uh, but yeah last week was um. Last week was bad. I mean it was not um unprecedented in the sense that weve had certainly multiple times in digital assets. Young history, where weve had 30 to 50 moves in short periods of time um. But i think it was historically bad in the sense that it was really the first time it was happening in conjunction with bad things happening everywhere else or everywhere else in the world as well. I mean oil dropped nine percent. Last week, gold was down two percent uh. The s p was down five percent for the second week in a row after yet another fomc induced head fake um. I think monday alone was the only third day uh since 1962, where both 10 year treasury treasury yields rose more than 20 basis points. At the same time that the s p fell three and a half percent um. So you know suffice to say that everything going on in global markets is pretty unique right now and digital assets is no different. I mean we had basically full scale liquidations across major financial institutions within digital assets, along with a lot of fear because theyre not transparent, and we just dont know where the bodies are buried and whos going to be next to float to the surface.

And that leads to a lot of contagion. It leads to a lot of de risking. It leads to a lot of deleveraging, which obviously leads to lower prices. I have to ask: what does the word crypto or the phrase crypto winter mean to you, because it is something thats thrown around a lot and has been for say a few years now? What do you think of when you hear that yeah its about you know? I think the same thing as i think about when i hear the word bull and bear market right. Somebody arbitrarily decided that a bear market in equities was a 20 peak to trough decline. Okay, you know feels pretty painful if youre down 19 as well right, i dont know why 20 is the number we care about, and you know same with crypto winter um, you know feels pretty bad right now. I i dont know what defines it um i dont know uh, if theres a length in time that it has to hit. You know dont forget that in 24 7 trading, you know one year in digital assets – is the equivalent of six and a half years of the equity market in terms of just the hours of operations. So you know a three month: swoon could be. You know the equivalent of a two year downtrend in equities, so you know i dont know again what defines these things um, you know id say most people in the digital asset space are prepared to hunker down right now, right that means um.

You know probably less growth from the growth companies in the space in terms of hiring and new product launches, probably means you know less news and less events and less catalysts coming out of the project and instead more building and more shipping product. You know generally, if this is you know, a time period of crypto window or whatever. That means it generally means that theres a spring on the other side, which is really what matters most. You know five years ago. I remember you know sitting here in 2017 2018 wondering if this industry was ever going to bounce back. I dont think theres a single person in this industry or even outside of this industry, who actually believes that at this point right, there is real product market, fit theres, real success stories, theres real uh reasons to believe that there will be a spring its just a Matter of when and how deep the cuts are before that happens, talk to me a little bit about the strength being shown in the d5 market, especially amid this quote: unquote: crypto winter uh. What are you seeing? Yeah, i mean d5, you know, without mincing words, has been flat out amazing. I mean its its absolutely crushing any of its centralized counterparties in terms of uh not going down not having any issues. I mean you look at all the failures right now in the market. Right from celsius to three arrows to tara luna, i mean these were centralized.

Uh players and companies not defy applications. The d5 applications themselves, whether it be a decentralized exchanges like a unit swap or a sushi, swap or decentralized lending application like a compound or a maker, or an ave or decentralized insurance like nexus mutual or decentralized asset managers, um that they, the protocols, are working theres. No downtime theres been no uh coming offline or trying to bail out any of their counterparties. You know theyre working as designed, and i think that most of the people who actually pay attention to space recognize that this is a pretty big turning point for d5 right d5 works. Now the issue with d5, in my opinion, is not the applications themselves. Its the end product right, i can go – do some amazing stuff in a d5 lending application right, i can go post my bitcoin as collateral take out a loan in usdc and that works amazing. The problem is, nobody accepts usdc, i cant go pay my rent with usdc, i cant go pay a vendor with usdc, so the issue is the adoption of the end product. The stable coins are the assets that we need to fix, not the d5 applications themselves. Um. You know, and i think once we get that once we start to get a world where all of your assets can become unchained, you can take your home equity and use it as as collateral for for a loan. You can take your jewelry or your car or other valuable assets and those become on chain collateral and then vice versa.

The stuff that you take out your ethereum, your usdc, your usdt, when we can actually start spending that and using that, i think people are going to flock to d5 much faster than anyone expects because again it works. It holds up theres, nothing, inherently wrong with the applications uh. You know its just that theres, not enough use cases for d5 end products outside of d5 itself and trading all right. So how long is this road ahead for investors? Do you have an outlook in terms of a recovery for crypto yeah, its a good question i mean, like i said. I think the one difference between this and and 2017 18 is that i have absolutely um 100 confidence that there will be a recovery and that most of the assets that are good projects and have good tokenomics will in fact hit all time highs again. I dont have any visibility into how long that takes because um you know weve weve seen things like march 2020, where you know it was the most hated bull market for six months, and i remember writing that in august of 2020, that you know, people were still Mad that prices were higher because they were expecting a longer bear market that they could buy in, whereas 2018 was the opposite right. People thought it was going to be quicker and it ended up being about 18 months. So you know my guess would be. We probably start to see higher prices for the second half of this year.

You know again there there really isnt a lot of carnage in the applications themselves, thats all for today, but you can find that interview and a lot more over at cnbc.com cryptoworld.

https://www.youtube.com/watch?v=EvVCzX6kn8c