Bloomberg Crypto Full Show (07/05/2022)
>> WE ARE LIVE FROM BLOOMBERG'S WORLD HEADQUARTERS IN MIDTOWN MANHATTAN. I MATT MILLER. IT >> WELCOME TO BLOOMBERG CRYPTO. SHAKING THE WORLD OF DECENTRALIZED FINANCE. MATT: BITCOIN MAY BE HINTING AT A BOTTOM. WHETHER OR NOT WE'RE REALLY SEEING A FLOOR IS DEBATE. KRITI: DATA SHOWS THE MARKET IS
GETTING JUST AS FAR TO THE REST OF CRYPTO AND WE WILL DISCUSS. DAVID: PLUS MORE FROM THE AX WAS OF INTERVIEW WITH SAM BANK MEANT . THE MILLIONAIRE IS EYEING MORE ACQUISITIONS AS HE SOLIDIFIES HIS MASSIVE INFLUENCE IN THE INDUSTRY. KRITI: THAT IS ALL AHEAD BUT LET'S CHECK OUT THE MARKETS HERE BECAUSE YOU ARE SEEING THIS RISK OFF DYNAMIC IN THE BROADER MACRO MARKETS.
THE S&P 500 DOWN AND BITCOIN DOWN AS RISK SENTIMENT INDICATOR SHOWS THE PAIN HERE. BUT PUT THIS INTO A VOLATILITY ADJUSTED CONTEXT, BITCOIN IS DOWN 4%. -- DOWN 1%, PERHAPS A LITTLE BIT OF A TURNAROUND. THE DIGITAL EXCHANGE FOR CRYPTOCURRENCY IS UP ABOUT 3.2%. IT IS COMING IN LINE WITH SOME OF THIS DEFENSIVE TECH MOVE.
THIS LED TO THE RECORD HIGHS AND THESE ARE THE ONES OUTPERFORMING IN TODAY'S TRADE. THE INVESTOR OF COURSE BITCOIN IS ABOUT 6%. WE ARE WATCHING AND IT IS INTERESTING TO SEE THAT DIVERGENCE BEFORE THE STOCK MARKET IS PRICING IN. MATT: IT REALLY PUTS IT IN PERSPECTIVE TO LOOK AT THE DROP THAT WE HAVE SEEN OVER THE LAST QUARTER IN PERCENTAGE TERMS. IT'S THE BIGGEST DROP WE HAVE SEEN IN THOSE TERMS SINCE ALL THE WAY BACK TO Q3 IN 2011. IF YOU LOOK AT IT IN TERMS OF
ABSOLUTE NUMBERS. IT SAYS A LOT ABOUT HOW FAR WE HAVE COME. COMPANIES CAN SWOOP IN. >> I THINK THAT WE ARE IN A PLACE WERE WE COULD MAKE SIGNIFICANT ACQUISITION. SHE SAYS THERE IS ALIGNMENT ON IT. THIS IDENTIFIES.
THE VALUATIONS DO PLAY. IT IS ALWAYS OVERHYPED. IT AND NEVER MADE A TON OF SENSE AND WERE MOSTLY -- WE WERE TRYING TO FIND WHO WHERE THE RESPONSIBLE PLAYERS THAT WOULD HANG OUT AND HAD A SUSTAINABLE MODEL. OBVIOUSLY, WE WILL TAKE A LOOK AT ANYTHING. AND THERE MIGHT COME ALONG REALLY COMPELLING OPPORTUNITY. MATT:
THE CRYPTO CONTINUES. -- THE CRYPTO CHAOS CONTINUES. VAULT HAS BECOME THE LATEST AMONG SEVERAL CRYPTO LENDERS TO RESORT TO EMERGENCY MEASURES IN ORDER TO STAY AFLOAT. KRITI: JOINING US IS NOEL ATCHISON. THANK YOU FOR JOINING US. LET'S START BIG PICTURE. YOU HAVE A BACKGROUND IN
CAPITAL MARKETS. HOW MUCH OF THIS MOVE YOU ARE SEEING IS CRUNCH, THE RESULT OF MACRO FACTORS? CONNECT THE DOTS FOR US? >> THANK YOU SO MUCH FOR HAVING ME. NOTHING I SAY IS INVESTMENT ADVICE. BUT GOING BACK TO YOUR QUESTION, IT IS VERY MUCH IN LINE.
WE ARE PAYING ATTENTION TO WHAT IS HAPPENING WITH TECH COUNTRIES. IT IS ACROSS THE ENTIRE MARKET. FROM LIQUIDITY BEING WITHDRAWN ON ALL FRONTS, IT IS STARTING TO TAKE A TOLL.
THEY COME DOWN A LOT. IT IS ALMOST HALF OF WHAT IT WAS IN MAY. THESE HIGHLIGHTS ARE OF THE SPECIFIC NATURE AND A SLUMP THAT WE HAVE SEEN IN THE MARKETS VERSUS THE BROADER MARKET.
IT IS A REMINDER THAT CRYPTO DOES BRING IN A NEW TYPE OF INVESTOR. MATT: I WONDER ABOUT THE NEW INVESTORS IT CAN BRING IN OR THE NEW PEOPLE WHO ARE GOING TO WANT TO LEAVE WALL STREET FOR CRYPTO AS YOU DID AND AS A NUMBER OF SUPERSTARS IN THE INDUSTRY HAVE. IS THAT GOING TO CONTINUE WITH THIS CRASH AND PRICES? OR DOES THAT DISSUADE PEOPLE FROM TAKING THE LEAP? >> IT DOES NOT DISSUADE PEOPLE WHO ARE INTERESTED IN THE FUTURE OF MARKETS.
WE ARE SEEING QUALITY CANDIDATES AND THOSE THAT BELIEVE IN REFORMING THE POTENTIAL OF THE INDUSTRY. AND THE BUILDERS ARE GOING TO CONTINUE TO BUILD. MANY MARKETS ARE CONTINUING TO DO SO AS WELL. THE MARKETS ARE A LOT MORE INTERESTING. THE REAL WORK DOES GET DONE. IN THIS MARKET IS SO DIFFERENT
FROM THE LAST ONE. IT IS THE WORLD'S THIRD-LARGEST ECONOMIC BLOCK. WE HAVE THE PRESIDENT OF THE UNITED STATES ISSUING MORE EXPLORATION. IT WILL BRING IN NEW TYPES OF INVESTMENT. MATT: ONE OF THE THINGS I'VE NEVER UNDERSTOOD IS I CAN GET SEEMINGLY EVERYONE CONVINCED ABOUT THE USE CASE FOR BLOCKCHAIN.
IT IS INCREDIBLY EASY TO PUT CONTRACTS ON THERE. WHY DO YOU NEED TO OWN THE TOKEN OR TOKENS? >> EXPERIMENTATION WITH ECONOMIC INCENTIVES. WITH NEW ECONOMIC PRINCIPLES IN REAL TIME, MOST OF THESE ARE NOT GOING TO WORK. THESE ARE ONE OF THE THINGS
THAT MAKE ME EXTREMELY BULLISH. I REMEMBERED HOW EXCITED WE WERE ABOUT META-ON THE BLOCKCHAIN. AND I DON'T THINK ANY OF US ARE GOING TO CLAIM THEY ARE USELESS. EXPERIMENTATION AND INNOVATION, AGILE AND AT SCALE IN REAL TIME. THAT IS JUST ON THE TECHNOLOGY FRONT.
KRITI: THAT TECHNOLOGY IS SOMETHING THAT IS A DIGITAL EURO AND A DIGITAL YOU ON. -- YUAN. IF THOSE MECHANISMS OR TOOLS ARE ULTIMATELY CREATED AND HAVE THE REGULATION AND BACKING FROM THE CENTRAL BANKS AROUND THE WORLD, WHAT IS THE CASE TO HOP INTO? >> THE USE CASES ARE FOR BITCOIN TO BE TRULY DECENTRALIZED. ALL SORTS OF CASES CAN BE ON TOP OF THESE.
WHAT WE'RE MOST EXCITED, WE ARE ALL USING CENTRAL BANK LAND AGENCIES. MATT: IS IT A GOOD THING FOR THE INDUSTRY OR A BAD THING? THEY ARE TELLING PEOPLE THAT THEY CAN'T ACCESS THEIR MONEY OR THEIR PROPERTY. >> WE THINK ULTIMATELY IT WILL BE A GOOD THING FOR THE INDUSTRY. WE NEED TO PROTECT INVESTORS AND MAKE SURE THAT THIS IS A NET POSITIVE FOR THE INDUSTRY. OBVIOUSLY, MANY INNOVATORS WILL HAVE A PROBLEM. THE INSTITUTIONAL INVESTORS WILL BE HAPPY. MATT:
AWESOME TO HAVE THIS CONVERSATION AND I HAVE SO MANY QUESTIONS THAT I MIGHT JUST CALL YOU AFTER THE SHOW BECAUSE IT IS GREAT TO GET YOUR INSIGHT HERE. COMING UP, WE WILL DISCUSS THE RISKS AND OPPORTUNITIES IN THE NFT MARKET WITH COLLECTOR SERGIO SILVA OF FIRE BLOCK. KRITI: AND MORE THE EXCLUSIVE ENTERED YOU -- INTERVIEW WITH SAM BATEMAN. IN THE MIDDLE OF THIS CRYPTO WINTER. MATT:
KRITI: THIS IS BLOOMBERG CRYPTO. I'M KRITI GROUPED UP WITH MATT ELLER. AT SPIRALING DOWNWARD AS NFT SALES PLUNGED BELOW THE $1 MILLION MARK. THE J PG NFT INDEX TRACKS A HANDFUL OF LEGIT PROJECT DOWN BY MORE THAN 70% SINCE ITS INCEPTION IN APRIL. AND NFT COLLECTOR AND SALES DIRECTOR AT FIRE LOCK JOINS US NOW. SERGIO, THANK YOU FOR JOINING
US. IT IS PRETTY EXCITING BECAUSE YOUR BACKGROUND IS NOT JUST NFT. YOU DO A LOT MORE. YOUR CAREER HAS BEEN FAR MORE MACRO. BUT WHAT DREW YOU TO NFT'S TO BEGIN WITH? THEY WERE JUST STARTING OUT AND YOU'RE THE ONLY GUY IN THE ROOM THAT SAID THIS IS SOMETHING THAT'S GOING TO GO BIG. SERGIO: I WAS A SALES TRAINER AT BARCLAYS. AND I WAS BORED ONE DAY DOING RESEARCH FOR MY MORNING NOTES.
AND I HAD SEEN SOMEBODY MENTIONED ON ONE OF THE CRYPTO NEWSLETTERS THAT A COLLECTOR PAID OVER $100,000 FOR SOMETHING. I TOOK THAT AND WROTE A NOTE SAYING HOW IT WAS RIDICULOUS AND IT SHOWED THAT THE DOLLAR WAS LOSING ITS VALUE. PEOPLE WERE LOSING THEIR MIND. IN MY RESEARCH, I JUST FELL DOWN THE RABBIT HOLE.
FELL IN LOVE WITH IT AND GOT RED PILL'D AS THEY SAY. AND I FELL IN LOVE WITH SOME OF THE UNIQUE VISUAL ASSETS. KRITI: THEY LOST 70% OF THEIR VALUE AT LOOKING AT THE J.P.
MORGAN INDEX. WHY IS THAT HAPPENING AND WHAT TURNS IT AROUND? MATT: A LOT OF STOCKS LOST VALUE OVER THE LAST FEW MONTHS. LOOK AT TECH STOCKS OR HOUSING WEAKENING A LITTLE BIT. I THINK THAT LOSS IN VALUE COMES NOT JUST FROM GENERAL MACRO FACTORS, BUT NFT'S AND THE TOKENS, YOU HAVE TWO COMPONENTS.
AT BEING CRYPTO ITSELF AND THE FACT THAT THEY ARE 24/7 TRADABLE ACROSS THE WORLD. THEY REACT DIFFERENTLY FROM ASSETS. MATT: I WANT TO BREAK IN HERE WITH SOME NEWS COMPLETELY UNRELATED ALTHOUGH YOU MAY WANT TO SELL THE NFT OF HIS RESIGNATION.
WE ARE SEEING THAT THE CHANCELLOR AND THE U.K. IS GOING TO RESIGN. HE IS STEPPING DOWN AS CHANCELLOR. THIS IS NOT THE ONLY RESIGNATION FROM BORIS JOHNSON'S GOVERNMENT. THE SECRETARY OF STATE FOR
HEALTH WILL RESIGN AS WELL. A COUPLE OF KEY MEMBERS, AND CERTAINLY ONE INCREDIBLY IMPORTANT MEMBER TO BORIS'S GOVERNMENT. ONE WHO HAS BEEN AN IMPORTANT MEMBER RESIGNING. WE WILL CONTINUE TO FOLLOW THIS STORY FOR YOU. BUT IT BRINGS UP AN INTERESTING POINT SURROUNDING NFT'S THAT I HAD NEVER BEEN CLEAR ON. WHO HAS THE RIGHT TO SELL THESE
KIND OF THINGS? WHEN I SEE AN NFT OF LEBRON'S DUNK OR AN NFT OF THE PULP FICTION SCRIPT. OR IF I MAKE AN NFT OF THE RESIGNATION AS CHANCELLOR, HOW DO I HAVE THE RIGHT TO SELL THAT? SERGIO: THIS IS THE BEAUTY OF NFT. YOU CAN SEE THE PROVENANCE OF THE TOKENS. IF YOU OWN THE IP OR CREATE AN IP FOR NFT, YOU CAN SELL IT. WHOEVER HAS THAT TOKEN CAN TRACE IT BLACK ON THE BLOCKCHAIN TO WHEN IT WAS MINTED AND SEE, IS THIS SOMETHING WHERE THE CREATOR -- MATT: FIRST COME FIRST SERVE? SERGIO: NOT REALLY.
A PICTURE OF LEBRON THAT SOMEBODY MINTED THAT DOES NOT COME FROM HIS TEAM, IT'S NOT LICENSED. WOULD YOU VALUE THAT? NOT REALLY. BUT YOU ARE ABLE TO BUILD COMMUNITY AND DELIVER VALUE. IF LEBRON CELLS YOU AND NFT AND THAT GIVES YOU ACCESS, THEN THAT IS WHERE THE NFT VALUE COMES FROM. MATT: THANK YOU FOR JOINING US. WE HAVE TO GET BACK TO THIS BREAKING NEWS.
SERGIO SILVA GIVING US SOME FASCINATING INSIGHT. I WANT TO GET TO WHAT IS GOING ON IN THE U.K. BECAUSE SUNAK HAS BEEN SUCH AN IMPORTANT IF NOT CONTROVERSIAL MEMBER OF BORIS JOHNSON'S GOVERNMENT. >> THEY HAVE DRAMATICALLY RESIGNED FROM BORIS JOHNSON'S GOVERNMENT. AND THIS FEELS LIKE THE END OF THE BORIS JOHNSON ADMINISTRATION.
IT IS LOSING TWO OF YOUR BIGGEST CABINET MEMBERS AND THE MANNER IN WHICH THEY HAVE DONE SO. THIS IS WHO THEY ARE FIGHTING FOR. THROUGHOUT THE DAY, IT WILL TAKE A CABINET PERCH TO GET RID OF BORIS JOHNSON. AND IT ALL COMES AFTER THAT ANGER THAT THEY HAVE BEEN HANDLING.
HE WENT TO RESIGN LAST WEEK OVER THOSE ALLEGATIONS. WE SEE THAT CABINET OF NATIONS COMING THROUGH NOW. KRITI: PUT THIS INTO CONTEXT FOR US BECAUSE THIS COMES WITH THE U.K. DEALING WITH A COST-OF-LIVING CRISIS AT A TIME WHEN THE GOVERNMENT HAS BEEN TALKING ABOUT SUBSIDIES TO GENERAL BRITS, TALKING ABOUT DEALING WITH FOOD INFLATION AND ENERGY INFLATION. HOW DOES THE CHANGING GOVERNMENT REFLECT MOVES LIKE THAT? >> THAT'S WHY THIS RAGS THE NATION IS SO DRAMATIC. I KNOW THE WAR IN UKRAINE IS ONGOING AND THEY ARE TRYING TO DEAL WITH THIS CRISIS. BUT I STILL FEEL LIKE I HAVE TO
RESIGN. THIS IS THE U.K. APPROACHING THE ECONOMY INTO TURMOIL. IT IS IN DISARRAY. THIS GOVERNMENT IS IN TOTAL DISARRAY AND WE WILL SEE WHO WILL RESIGN NEXT. MATT: WE HAVE SEEN FROM THE FINANCIAL MARKETS PERSPECTIVE, A LITTLE BIT OF DISARRAY HERE TODAY. HAVE THE POUND FALLING BELOW
119. THIS IS NOT SOMETHING THAT IS SOLELY THE U.K. PROBLEM. BUT I HAVE SPOKEN WITH ANALYSTS AND INVESTORS TODAY THAT HAVE SAID THAT THE U.K. IS HAVING THE SAME PROBLEMS AS THE REST OF EUROPE IN TERMS OF INFLATION AND A SLOWDOWN IN GROWTH. BUT ADDING BREXIT TO THAT IS
JUST REALLY INSULTED INJURY. -- INSULT TO INJURY. >> IT CERTAINLY IS. AND OUTSIDE THE TRADE BARRIERS, IT IS ADDING PRESSURE TO THE INABILITY TO ATTRACT LABOR. THEY ARE PUSHING UP PRICES. IT IS A LACK OF CONFIDENCE. MATT: THE KEY QUESTION HERE IS, AS YOU WATCH SOME OF HIS MOST IMPORTANT MINISTERS STEP DOWN, IS THIS THE END FOR BORIS JOHNSON? DOES HE HAVE TO GO? >> IT FEELS LIKE IT. IT'S THE WIDER PARLIAMENTARY
CONCERNS. IT WAS THE CABINET THAT WAS STICKING WITH HIM AND THE CABINET IS NOT WITH HIM. THERE'S REALLY NO ONE LEFT. AND THAT'S WHERE WE NOW STAND. KRITI: IT WAS NOT LONG AGO WHERE BORIS JOHNSON WAS FACING A NO-CONFIDENCE VOTE. WHAT DOES THE TIMELINE LOOK LIKE FROM HERE? >> THERE WOULD HAVE TO BE A CHANGE IN THE RULES TO ALLOW ANOTHER CONTEST BECAUSE CURRENTLY, IT HAS BEEN A YEAR BETWEEN THE VOTES. THERE COULD BE AN ANTIABORTION
MAJORITY. MORE LIKELY AT THIS POINT, BORIS HIMSELF IS SEEING IF THE WRITING IS ON THE WALL. HE MIGHT TRY TO FIGHT ON BUT AT THIS POINT, HIS DIGNITY AND HIS POLITICAL CREDIBILITY AND LEGACY IS IN DANGER. MATT: DOES HE HAVE ANY SUPPORT LEFT IN THE U.K.? ASIDE FROM QUEEN ELIZABETH, IT SEEMS LIKE EVERYONE IS DISSENTING HERE. ARE THERE ANY ALLIES LEFT FOR HIM IN GOVERNMENT? >> TWO OF HIS CABINET MINISTERS HAVE RESIGNED WHICH LEAVES THE OTHERS AND POST. HE DOES STILL HAVE SOME LOYALTY IN THE PARTY,
BUT NOT ENOUGH AT THIS POINT TO SURVIVE AT, AT LEAST THAT'S HOW IT FEELS RIGHT NOW. BUT DEFEATS IN THE ELECTIONS HEAVILY LAST MONTH. MATT: WHO CAN REPLACE HIM AT THIS POINT? DOES DOMINIC RAAB, IF HE RESIGNS, TAKE OVER? DO YOU HAVE CHALLENGES FROM PEOPLE LIKE LIZ TROUGH? >> A DOMINIC RAAB IS CURRENT DEPUTY PRIME MINISTER. AND THERE IS A CONTEST FOR A NEW LEADER. BUT YOU ARE RIGHT TO SAY THAT THERE ARE A LOT OF POTENTIAL CANDIDATES THAT COULD BE THE NEXT PRIME MINISTER. HE TALKED ABOUT LIZ. AND ONE OF THE RESIGNATIONS
COULD BE A CONTENDER. AND YOU HAVE PEOPLE LIKE NADINE, JEREMY HUNT. THERE IS A LARGE CAST OF CHARACTERS THAT HAVE CHANCES. THAT IS WHERE THE THOUGHTS WILL
BE TURNING NOW, TO FOLKS THAT WILL BE THE NEXT. KRITI: AND IN THAT CASH OF POTENTIAL CANDIDATES, FOR ANYONE NOT FAMILIAR WITH U.K. POLITICS, THE QUEEN HAS TO AGREE WITH WHOEVER IS IN BORIS JOHNSON'S SEAT.
IN THAT CAST OF CHARACTERS, WHICH IS PERHAPS THE MOST LIKELY OR FRIENDLY WHEN IT COMES TO BREXIT POLICIES AND PLAY RIGHT NOW? THE U.K. AND E.U. ARE STILL AT ODDS. >> ALL OF THOSE PEOPLE THAT I MENTIONED WOULD NOT HAVE A STRONG POSITION IN TERMS OF BREXIT. WE WOULD EXPECT BEING MORE CONSTRUCTIVE. THEY MIGHT BE MOVING TOWARDS THAT IF THE PARTY DOES GO FOR A KIND OF CENTRIST CONSERVATIVE CANDIDATE. MATT: THANKS SO MUCH FOR JOINING US AND A PLEASURE.
I'M SURE YOU WILL GET TO YOUR DESK AND START BANGING OUT STORIES. WE WILL CAN 10 YOU TO COVER IT -- WE WILL CONTINUE TO COVER THE STORY. RICHIE SUNAK RESIGNING. JUST MOMENTS BEFORE THAT, ANOTHER RESIGNATION. KRITI: REMEMBER, WE ARE COMING INTO A CONTEXT WHERE STERLING HAS THE TRADE OF THE DAY. A LOT OF THAT COMING OFF OF THE RIPPLE EFFECTS OF THE EURO.
WE WILL KEEP YOU APPRISED OF ALL THE MARKET MOVES. WHAT DOES THIS MEAN FOR THE FUTURE? MATT: GUY JOHNSON RUSHING BACK TO COVER THIS. THIS IS BLOOMBERG. ♪
2022-07-09 15:19
