Fed Speak Has Spooked Markets, Roland Says

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00:00Emily, you know, clearly crypto is still still a kind of niche part of the market, even if

00:08Main Street is adopting it to some extent. Bitcoin is worth one and two thirds trillion dollars,

00:13though, so you can't really look away. And it represents animal spirits. You know,

00:18I guess your risk aversion pretty well. What do you think about the fact that we've gone from

00:24126 on Bitcoin down to 84 in like a month? Yeah, we would say, Matt, don't get too sentimental

00:32about sentiment. And Bitcoin is the poster child for a sentiment indicator to us. We've been

00:40struggling for years to identify the value there. It doesn't have any income. It doesn't have any

00:45earnings. The only thing that drives it, in our view, is the price itself. And so you're seeing

00:50a lot of that unwound. This market in general in 2025 is one that's been very, very much driven

00:57by sentiment, technicals, momentum. And we all know how those trades work. If something goes up

01:02in parabolic fashion, it tends to come down in parabolic fashion. So because we are seeing a bit

01:07of an unwind in terms of some of those momentum winners, those technical titans of the year,

01:13whether it's, you know, in the Cosby or whether it's in gold or in crypto, we're starting to see

01:18a little bit of that momentum coming out of the market here. So not totally.

01:23Or the momentum stocks, right? Or the likes of Robinhood, for example, the unprofitable tech.

01:30Emily, does that mean when you're looking at something like crypto, again, this fear that

01:34maybe people are getting margin calls, they have to liquidate other momentum type stocks,

01:38that you now need to use crypto to understand where the rest of this risk market is going? And

01:44if that is somewhat the case, is it troubling that as the rest of this market bounces,

01:47that Bitcoin, you can see it there, is still down nearly 4% this morning.

01:52Yeah, I think it's a really important point about how tied in a lot of these assets are with crypto

01:57markets. You know, and I think watching generally, you know, this morning, we are seeing some dip

02:04buyers coming in. That's that, you know, that's certainly the narrative that's pervading markets.

02:08And we'll see what happens around 10 or 1030. But I also wanted to point out that the Fed speak

02:13that we've heard this morning may also be contributing to some of the sort of risk on

02:18bounce that we're seeing. You know, Powell and other Fed members sort of spooked the markets.

02:23It's almost like they've tapped on the brakes a little bit and the markets really jolted

02:28because of it. So you heard hawkish speak, of course, from Powell and then some other Fed members,

02:33some of that based on the lack of data amidst the government shutdown. But then John Williams comes

02:38in this morning and suggests that, you know, that December rate cuts back on the table. So

02:42I think the markets have really been responding to this idea that the Fed's going to loosen financial

02:48conditions, even with inflation not back down to their 2 percent target and a U.S. economy holding

02:56in OK. In a way, that's like the dream scenario for risk investors is that the Fed is cutting into

03:02relatively stable economic growth. So you're seeing that narrative, I think, impacting markets this

03:08morning as well.