BitGet CEO on Overall Crypto Market Turmoil

It's Monday, August 5th and this is Markets Daily hosted by me Jen Sani. On the show, we navigate the current shaping the crypto markets, providing insights against the broader financial landscape. So whether you're actively trading or simply fascinated by the volatility of crypto markets. This show is your compass to understanding what's happened where we are and where we're going. Good morning. Everyone on today's show, Big Get Ceo Gracie Chen joins us, Gracie. Hi. Hi. Thank you for having me. First of all, Gracie, I want to say congratulations on becoming the CEO of Bit Get. I think the last time we spoke you were managing director. So congratulations on that. Thank you. That was a, yeah, very recent promotion in May. Yeah. All right. Well, you've been promoted recently. I've been following your journeys at the Olympics in Paris. But the first thing that we got to talk about is the market downturn. Uh Bitcoin is down more than 15%. Last I checked Ether down more than 20%. The coin desk 20 index which follows uh 20 cryptocurrencies is also down around 20% as a CEO of a crypto exchange. How are you watching the markets this morning. Mhm Yeah, like you said, the major mainstream crypto assets have been fallen sharply over the past 24 hours. Uh Right now we we check out a few data points, for example, um how much the contract or the derivative market uh has been, have have had been seeing some burst. And uh there were uh lots of long positioning people who have, who can margin call. And then according to this data set from the alternative.me where they track the panic index. Uh So the market panic index has dropped to 26 which means it's in a panic mood. And the core reason, in my opinion, uh behind the, the all these changes is number one, the global capital market sentiment sort, for example, uh people have been saying that the US economy is facing recession and the US stock market fell for three consecutive trading days. The Japanese, the Japanese stock market also fell for two consecutive days. Um So this big macro economy downward pressure has been also causing the um the whole crypto market sell off. And then the second reason I would say some emotional impact uh from large institutions, for example, uh side of crypto, there is uh back uh Berkshire Hathaway who released the, their uh Q two report where what we see is that the cash portion is a new high in recent years, meaning that they have been selling off lots of their equity assets, for example, Q two, this sort of uh uh apple, there was a sort of uh Bank Bank of America in the last 12 trillion days. And then inside crypto, there's also been saying that uh um John crypto uh the very leading market maker or used to be a very lead, leading market maker in our space who sold lots of Ethereum today and it's not jumped. I was also checking some other news resource uh which says it's actually five major market makers including jump including winter milk, including moa who are selling their Ethereum. And that the cost the Ethereum price to fall more than, for example, Bitcoin and Solana, I want to talk about a few things you mentioned there. Let's start first with the recession. I know that um economists have been calling for recession for quite a while now and although there have been times where it might feel like we're in a recession here in the United States, it hasn't come yet. Do you think that a recession is coming in the next year? And if so, how do you think crypto markets would react? Hm. That's a good question. I'm not a macroeconomist. Um So in terms of recession, what I read or II I heard is that um it's happening and also there are certain markets whose recession or whose economy downturn is actually much more serious than the US. So US is of course, the largest financial economy out there and that's why people have been watching it closely. Uh But I think there are some Asian markets, there are some European markets who are doing uh pretty bad right now. So if I personally give it a give it a hit, I would say yes, II I personally think it is uh uh going to be a recession. Um And then what does recession mean to crypto? I would say it's generally negative because the whole market, the whole economy or the whole financial market right now links to each other very closely. And Cryptocurrency is not what it was when Bitcoin just came out 15 years ago uh where it's like a stand alone, you know, very um anti risks, for example, it was called an anti risks asset for a moment. But right now it's so connected with the global market and the fact, for example, BT C ETF and Ethereum ETF have been approval by, by SEC. Sorry, I'll take it back. But the Ethereum uh the Ethereum ETF is not fully approval. It's not, it's not listed yet. Oh sorry, it's, it is listed. No, it's, it is listed. Yeah. So the fact that the Bitcoin the Bitcoin Ethereum BT ETF has have been approval uh approved in the US and in certain other markets also make it much more linked to the trap by industry. Yeah. So um generally, I would say this is a um this is, this is going to be very tricky. Uh However, the, the fact that the US thinking about interest rate cut, that's another factor coming into the space because uh what we've been hearing is that in September, there can be a very high possibility of a 50 bips interest rate cut. And also today, we were just discussing right there whether this is a urgent um interest rate cut cut call and that may happen before September. Um Then in that case, this is going to be more of a bullish thing for Cryptocurrency. But generally, I think Cryptocurrency market is not broken, it's not like bloody. And that's why I, I also tweeted a meme sticker that I made myself, which is people were saying uh buy crypto like goodbye, buy crypto and greasy is saying, buy crypto like buy more because this is uh uh probably a good time to accumulate more. So you are in the buy the dip camp. I am in the buy and dip camp and I've been buying uh even if it was like 60 K or so. Um And we see that happening in many other companies like microstrategy, like many other bigger listed firms. Uh So I don't think I'm, I'm, I'm the only person in this camp. Uh But however, right now, Bitcoin is traded c so right now it's at 52,000 and it reached 50 it touched 50 K today. Uh I was actually just accident like just just landed in Asia um, and, uh, and I, I opened my phone and I saw, oh, my God, we would just touch the 50 K. and I think this may not be the, the lowest point that we see in this week. I do, I do doubt. Yeah, 52 or 50 is, is the lowest point already. Uh, but, but I think this week is, it can be as low as 40 I think, I think 4345 that's probably the uh or even 47. That's probably another price point that I myself is looking at in terms of buying more Bitcoin uh uh for my personal portfolio. But again, no financial advice and uh it's all like very personal um decision. It's not even, you know, from my research team, I haven't discussed this, you know, very much detail with them in terms of our, our outlook for the Bitcoin price. But as a personal investor, I think like 47 ish is, is a price point that I might want to buy more. Mhm. Well, we mentioned some of the uh macroeconomic trends. There are tensions in the Middle East investor confidence in the global economy is lower, that's being reflected in the price of um all the top cryptos this morning. You just mentioned, you think it's probably going to go into the uh forties. Now, traditionally the time of the year we're going into the markets are higher. Where do you think we go from there, if we, once we hit that low point in the forties, everyone's buying the dip. Where does the price of Bitcoin go by the end of the year? Uh Do you think as an investor? Yeah, as an investor, I think there are certain things that we need to obs observe closely. Uh Number one is uh like how for this, for example, especially this week is going to be very crucial. Uh It may go down for, you know, one or two day or just the whole week. Uh And, and what price point does it touch well, kind of, you know, balance the. So, um for example, the derivative market in terms of who are having the long position, who are having the short position and then hopefully, you know, reduce the selling pressure for future rises and really form a really fast rising market. I think that's one key factor in terms of formation of a rapid rise in the market. And the second thing that we are observing is of course still the map crow economy, whether um whether the US is doing the interest rate cut at what number, at what time? Uh whether you know presidential election means anything to crypto. Obviously, right now, the both um both pre uh presidential candidates are very active in the space. Donald Trump just gave a speech in Nashville last week, I was in Paris with a group of crypto leaders. Uh I'm not going to name them. Um Because, because that just names that you will be able to recognize. But we were just discussing, and we were watching the, the, the speech together and we were also discussing um that this is this that he probably didn't even say lots of substance there. Uh But the fact that he went to the uh Bitcoin conference means something. OK. So you mentioned that you were in Paris with a group of crypto leaders. You won't mention who they are. You watched Trump give the speech at the Bitcoin Conference in Nashville. I believe that there were representatives from both the Democratic and Republican Party, although Harris didn't speak at the conference. Talk to me a little bit more about the chatter. What were the leaders that you were hanging out with in Paris saying about the upcoming elections? What were they saying about Trump's speech? First of all, I'm not a US citizen and I don't, you know, really watch the, the election very closely and I'm not, of course, not a, not a voter, uh not qualified to be a voter. Um But I think before Harris stepped in, when I, when it was Donald Trump versus Biden, people were really thinking, you know, Donald Trump is going to win and if he went, uh if he wins, it's going to be quite bullish for the crypto market because he has been more friendly um to our space and uh uh for the past few years, Biden has been uh with, with his, you know, all these uh administrators have been kind of like crushing down the industry. And so it was a sentiment before uh Biden stepped down, but when Harris was, was there, uh I think people were, you know, finding it more interesting and more of a competition. Uh And if you refer to, for example, polling market, some of those prediction market right now, the the rate of who is going to be a president is actually quite close. Um With, with that said, uh I think our sentimental, what we were discussing in Paris is very much number one, we were watching the game but we uh sorry, we were watching the, the speech, but we also realized that Donald Trump didn't really say anything that is very substantial. Uh There were rumors that, that he may make Bitcoin as a treasury, uh which of course didn't happen. Uh And there were also discussions around, you know, making it more of AAA national asset, whatever. Um But what, what, what Donald Trump did say in the speech which you can refer to the speech. Number one, he said he would fire Gary Gensler if he were the president and number two, the US market or the US government won't sell Bitcoin. Uh If he were the market. Um Well, if he were the president again, he was in a Bitcoin conference and I think he, he knew what the audience is expecting or what the audience wants to hear. Um But, but we do think, you know, he has mentioned something uh although not very important substance, but the fact that he was in this Bitcoin conference means something to our industry already. Gracie. Thank you so much for joining Market Daily this morning and providing uh insight into the market. I hope you have fun buying the dip and I'll be crossing my fingers that, that maybe your predictions don't come true. We don't get to as low as 42 K. All right. Thank you for having me and to everyone who is listening and watching. Thank you so much for coming on this journey with me to better understand the crypto markets. 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