In this episode, we explore crypto's role in the broader financial markets, and how the how the latest changes in the macro picture impact crypto with Noelle Acheson. Noelle is the editor of the Crypto is Macro Now newsletter, and former head of research at Coindesk and Genesis Trading. We cover:
Crypto's role as a risk asset, and how the volatility in rates affects macro vs crypto liquidity
Why Bitcoin is the most liquidity-sensitive asset
Alternatives to the traditional financial ecosystem, and Defi's resilience to the current stress tests
"Bitcoin is arguably the most liquid, sensitive asset to macro liquidity that exists in the market today. And by that I mean it's a risk asset, so therefore it is, along with other risk assets sensitive to increases and decreases in liquidity, decreasing liquidity, less money for risk assets... What makes Bitcoin the most sensitive? It is not at all sensitive to cash flows. It also is not economically sensitive except through the vector of macro market liquidity, so therefore it doesn't have the externalities that stocks and bonds will have, or commodities for that matter. So it makes it the purest liquidity play available to macro investors. Crypto liquidity is what at the moment is going to be giving Bitcoin it's volatility."
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