Oct 10, 2023

Ongoing tensions in the Middle East could spill over to the crypto markets and cause a short-term decline in riskier assets such as bitcoin (BTC).

Video transcript

The chart of the day is brought to you by crypto dot com. The world's fastest growing crypto app coin glass data shows crypto traders suffered over $100 million of losses from liquidations following the unprecedented Hamas attacks on Israel Lawrence, looking at markets. Um What's your take on that? Like, is this a warning sign? You know, could those numbers? Yeah, this is a $100 million is, is, is a lot, but it's not anywhere near some of the liquidations we've had in the past. And, and we have to recognize the idea that while volumes are up, was it like 15, some odd percent over the past week? Uh compared to the previous week, we're coming off of five if not 10 year lows in in transaction volumes. And the like of big in the likes of Bitcoin crypto winter is not necessarily just about prices falling in many ways. It's about the, the uh collapse in this case of volume. Um And, and, and we sort of have to think, ok, well, what's going on are institutions as interested as they were before we're seeing, for instance, the, the E futures, the nine or so whatever it was that, that went on to the market, the transaction volumes were incredibly low the first couple of days, just a million or so dollars worth of, of future of ETF uh uh transactions. It, it, it's, it's one of those things that we have to say, OK, what does this all mean? And, and we have to think if, if crypto is the revolution of finance, then this is incredibly early. And we, we look back to the history of, let's say Microcom and, and you know, Commodore 64. Uh If you, if you gave me a Commodore 64 and you said this is the future. No, people aren't using Commodore 60 fours anymore. Their iphones are thousands of times more powerful. Uh I I if you look at the internet, it's now a generation old, what the internet was in 1995 is completely different than what it is today. So at the very least this is sort of an early stage, we don't really know what the future of crypto is going to be. And this sort of reminds us that right now we go through these kind of winters and people say they're not as interested as they used to be, but who knows what the, as we're talking about, universities making those that kind of research just in the previous segment, we don't know what kind of uh innovations are coming. So stay tuned. It's interesting like I think your point that crypto winter is not just about prices, it's also about William is a very good one. And it's also one of the reasons why there's been so much value sucked out, not necessarily of the markets, but of the industry itself. And so that exchanges aren't making as much money as they were. And all these other players that really need that volatility and that trading activity to sustain what they do. But I think like, you know, and, and also I think very good point, like, you know, there would be a lot more activity if this were a bigger, more extensive and more influential industry. But at the same time, one could argue that the stability that we're seeing may well be the sort of thing that you need to start building real uh applications on top of it, right? I mean, the we used to talk about the volatility in crypto actually being a detriment to its ability to be used for functional purposes such as what ripple was just the ripple executive was just talking to us about, you know, the movement of money across borders and so forth. So it'd just be interesting to see whether or not it, you know, out of this stability period, real stuff could get built on top of it. But you're absolutely right. These volumes don't speak to. Uh I think, you know, an industry that is as yet is, is having a massive influence on the world. It's, it's pretty early days. Yeah. It's, uh, it's, look, it was a, it was an incredible innovation, uh, 15 years, almost a decade and a half ago. Yeah. Well, well, I'm saying it was an innovation, right? It's not just is, but it was definitely an innovation when it was launched. Uh, and we have yet to see what other iterations it takes. And I think that this, uh, yeah, to your point that if price is there, it's, it's just the refrain.

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