August 14, 2024

Bits + Bips: Market Chaos, Fed Missteps & Harris' ‘Crypto Reset’ - Ep. 688

1 hour 6 minutes

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger, and Joe McCann sit down with Chris Cecere of crypto investment firm Asymmetric to make sense of the latest market volatility and the factors driving it.

From the impact of the yen carry trade and the Fed’s controversial decisions on interest rates, to the potential signals coming out of Jackson Hole, the discussion cuts to the heart of what’s moving the markets. The group also dives into the SEC’s crackdown on Ripple, the ongoing drama surrounding wrapped bitcoin (WBTC) custody, and whether the Biden-Harris administration is genuinely considering a “crypto reset” or if it’s just political posturing.

Show highlights:

00:00 Intro

02:05 Whether the yen carry trade is to blame for the recent market sell-off and the concept of Value at Risk (VAR)

09:25 How Asymmetric handled the volatility of the sell-off using a strategy called “delta replacement”

14:17 Why the Volatility Index (VIX) spiked and whether it could do so again

22:21 Why Alex thinks that unemployment numbers started a panic and what the Sahm rule is

27:24 What might have triggered Jump Trading's sudden liquidation during a massive market sell-off, and whether more funds will face similar pressures

31:15 Why the market and major banks like J.P. Morgan agreed that the Fed missed the mark by not cutting rates in July

41:36 What key signals the Fed might send at Jackson Hole about the future of interest rates and the winding down of quantitative easing

45:40 How significant the timing of the first rate cut is in determining whether it will be bullish or bearish for the markets

53:45 What Ripple's lawsuit settlement and the SEC’s subpoenas to VCs mean for the broader crypto industry

58:13 Whether Harris will actually do a “crypto reset”

1:03:04 The drama surrounding the custody of wrapped bitcoin (WBTC)

Hosts:

James Seyffart, Research Analyst at Bloomberg Intelligence

Alex Kruger, Founder of Asgard

Joe McCann, Founder, CEO, and CIO of Asymmetric

Guest:

Chris Cecere, GP and Head of global macro and trading at Asymmetric

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By Laura Shin

4.6

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