Today Bitcoin stabilizes following a Volatile morning as new economic data Shows inflation is cooling former Alam Top Lieutenant Caroline Ellison gets her Sentencing date in federal court and Chain link Sergey nazarov breaks down How last night's presidential debate Performances could be impacting crypto [Music] Prices welcome to cnbc's crypto world I'm McKenzie seallow major Cryptocurrencies stabilizing this Afternoon as new economic data out this Morning revealed that inflation slowed Last month and Following last night's Combative presidential debate between Republican candidate Donald Trump and Vice president kamla Harris now as of Noon Eastern Bitcoin traded pretty flat At nearly $56,700 after dropping to the $55,000 Level the hour before ether also was Flat compared to 24 hours earlier salana However fell more than 2% now the former President recently positioned himself as A pro crypto candidate whose return to Office could Mark a win for the crypto Industry that has accused the current Administration of regulatory overreach Now while Trump has publicly courted the Crypto industry speaking at Bitcoin 2024 In Nashville over the summer promising Friendlier regulation Harris has yet to Detail a policy position on digital
Assets Now crypto wasn't mentioned in The debate last night but as we told you Earlier this week aent recent report From Bernstein forecasted that if Harris Wins the election Bitcoin could fall to As low as $30,000 now on the flip side Bernstein Predicts the cryptocurrency could hit New highs if Trump is elected president In November reaching a price between 80 And $90,000 by the end of the year now Following the debate pop Superstar Taylor Swift posted on her Instagram Account which has more than $280 million Followers saying that she will vote for Harris in November now citing online Betting site predicted Reuters reported That bets on a win for Harris improved To 56% from 53% before the debate while Trump's chances dipped to 48% from 52% Meantime new data out this morning Revealed CPI increased 2% in August in Line with Wall Street expectations that Put the 12-month inflation rate at 25% Which is the lowest that it's been since February of 20121 okay let's talk about the top Stories another sentencing in the ft X Case is around the corner Caroline Ellison former Alam research CEO and Ex-girlfriend of former FTX CEO Sam Bitman freed is scheduled to have her Sentencing hearing on September 24th and Her attorneys are arguing that she
Shouldn't get a prison sentence in a Filing submitted yesterday her attorneys Claimed that Ellison poses no risk to Reoffend and point to her quote early Disclosure of the crimes her unmitigated Acceptance of responsibility for them And most importantly her her extensive Cooperation with the government now in May Ryan Salem who was a former top Lieutenant at FTX was sentenced to 7 and A half years which was actually a Heavier sentence than the 5 to seven Years suggested by prosecutors and the 18 months requested by his defense Unlike Ellison Salem did not take the Stand during spf's trial but he had also Plad guilty to charges against him now He was initially trying to void his Guilty plea arguing that prosecutors Reneged on a deal to end an investig Ation into his partner the mother of his Young child but he walked back that Request still judge Kaplan wants to hear About the since withdrawn filing to the Court now Salem who's due to begin Serving a sentence on October 13th will Be in court tomorrow and I'll be there Tracking the development so stay tuned For coverage next a new report from Jeffree says crypto mining was Significantly less profitable in August The Investment Bank found that August's Average daily revenue per ex ahash fell By 11.8% month over month now that
Coincides with a 4.2% decrease in the Average price of Bitcoin and a 2.7% Increase in network hash rate Jeff also Said that North American publicly traded Miners mined a smaller share of new Bitcoin in August compared to July down To 19.9% of the total Network versus 20.2% A month ago now that's a part Jeffree Says to these miners bringing new Equipment online fast faster than the Network's hash rate increased all told The report found that mining economics Are moving in the wrong direction but That operational efficiency is improving And when digging into specific miners Jeff pointed to Marathon digital saying That the company's new strategy of Buying hosting providers that once Managed its mining infrastructure is Something that the Investment Bank Supports all right for our main story I Spoke with chain link co-founder Sergey Nazro about the impact of last night's Debate on crypto prices the role of Digital Assets in the upcoming Presidential election and how spot Crypto ETFs have been Going so let's start off with markets Because this morning crypto prices fell With Bitcoin dropping to the $55,000 Level as of around 11 Eastern after last Night's presidential debate where vice President kamla Harris put her
Republican rival Donald Trump on the Defensive now Bernstein came out with This report forecasting that Bitcoin Could hit new highs if Trump is elected In November Following last night's Debate some betting sites are now Showing higher odds of a win for Harris Compared to before the event now the Democratic presidential candidate has Yet to you know take a public stance on Crypto even though we've reported on Conversations happening behind closed Door between the vp's team and Industry Leaders my question to you Sergey do you Think that yesterday's debate Performance is factoring into today's Prices and what do you think will happen To crypto more broadly the market more Broadly if one presidential cand Candidate wins over the other in November yeah I think it's very hard to Understand and predict what moves crypto Prices in the short term I think people Have all kinds of you know short-term Theories in my view uh crypto adoption Is inevitable and so you basically Arrive at a world where the majority of The world's value is on blockchains Regardless I think if you have a Presidential candidate that's optimistic Towards crypto in the US then the US Market adopts crypto faster But crypto and blockchains are a global Technology and I think that eventually
The competition the global competition By other countries using blockchains Will force all other countries including The United States to adopt it as quickly As possible so I I think there will be a Difference in how the US adopts crypto Based on who the the president is but Fundamentally it's all really inevitable And it's now being driven more and more By countries outside the us that are Going to create a competitive Dynamic That will force the US market to adopt Blockchains even more so I I think there Will be um a significant impact but I I Don't think it'll fundamentally change Whether blockchains or cryptocurrency Gets adopted in the next five years but Switching gears since you were last on The show in May chain link has had a few Developments including the launch of Proof of reserves for 21 shares ethereum ETF now this comes 5 months after 21 Shares integrated chain link proof of Reserves for its Bitcoin ETF in an Effort to increase transparency walk me Through how this partnership works and How it's going so far we are able to Prove using chain links technology that There is a certain asset backing a fund And we're able to put that information On chain and that gives more and more Assurance to the people buying the real World asset buying the the the fund and So what what you're actually going to be
Seeing is more and more data that result In better compliance better transparency Better accountability and eliminates Eventually the need for those Shadow Books because eventually the data Through chain link is put on chain it's Similar to the transition you saw from Like fax machines to email there was a Period where people were still using fax Machines and they were still using email But eventually everyone ditched fax Machines and everyone is now on email so We're we're kind of going towards a World where proof of reserves is going To become the normal way That you prove things about assets and You might even get to a world where Proof of reserves proves things about Assets that aren't tokenized even so the The 21 shares work is is is kind of very Interesting because it's about a Traditional Financial structure but You're using onchain technology to prove Important key risk dimensions and what The status of the assets is in that Traditional Financial structure so what What what you're seeing is the value of Blockchain Technology as a data Transmission and reliability mechanism For something that is structured in a Traditional way as a traditional more Traditional Financial product and and This is what you will continue to see More and more of that the blockchain
World and the traditional Financial World will start merging and blockchain Technologies value will start being Provided to that group and I personally Believe that you'll end up seeing more Value value in real world asset tokens Than in cryptocurrencies So speaking About the ETF ecosystem more broadly in June van filed an application for spot Salana ETF making it the first issuer to File for a fund that would invest in Spot salana in the US 21 shares Then Followed suit what's your reaction to That development and what do you think Would happen there do you think that Those products will win approval as well Because I've spoken with others in the Industry and they said that they're Actually interested in a more robust Financial infrastructure allowing for Traders to you know hedge these products Uh to introduce leverage or is it more About what you just were speaking about A minute ago this tokenization of real World assets is that really where the Emphasis in the industry is right Now I I think it's both it's hard for me To tell which one will get more volume In the medium term I think initially the ETF rapper has such wide distribution And is so accepted as a reliable way to Hold value that it will initially get More usage but I think you will I I Think it's actually two different things
I I I think what will happen is you'll Have a community of more traditional Institutional users that are comfortable With the ETF wrapper as as a form of of Having value I do think there will be Many more ETFs because people want to Diversify and I know it seems funny to Some people when we say diversify Between Bitcoin and ethereum and some Other token but there is actually some Diversification there within the crypto Space so I I think you will see a Multitude of additional tokens in the ETF format because there's a a big uh Kind of ecosystem and a big distribution Channel there and then I think you will Also see a lot of tokenization of real World assets specifically tokenized Funds and then there will be a user Group that continues to grow larger and Larger that is the user group that likes What we call onchain Finance so they Like to have assets on chain they like To have proof about assets on chain they Like to have the nav data the AUM data All of the you know relevant metrics of Risk and success of an asset or a fund On chain because they believe in the Security transparency reliability 247365 uptime 2437 365 markets Properties of onchain finance and I Think that eventually onchain finance Will Eclipse will become bigger than the Traditionally wrapped asset world when
That will happen is difficult for me to Say but I am positive that it will Happen eventually it is inevitable Because it is the superior format and I Spend a lot of time with everyone from Central banks to the largest asset Managers to the largest you know private Banks to to to various fintex and many Defi startups everyone when you really Abstract away the different vocabulary Agrees that this is the better format For more Advanced Financial product like Funds and so I think you're going to see More and more tokenized funds and you're Going to see a growing community of People that want to participate in Onchain finance not as some kind of Cryptocurrency related thing but because The Technology creates a better Financial Product it creates a better fund it Creates a fund that you can redeem every Two seconds instead of every two months It creates a fund that you can know Things about not weekly but second by Second it it it adds a lot of valuable Properties to the trans the the the Transfer from I'm I have ETFs in the Traditional rapper World which doesn't Have you know the market uh speeds or Other properties to this onchain Finance World so that's kind of where I think We'll go in in in the medium to long Term but initially I think the ETFs will
Continue to break into the public Consciousness as a legitimizing force For cryptocurrencies Because it's kind of how people are used To interacting with things okay that's All for crypto world today but we'll be Back again tomorrow and we'll see you Then
