Today solana plummets after the second Network outage in a month the winklevoss Twins announced job cuts for their Crypto exchange and blame it on the Crypto winter in valkyrie's steve Mcclerk says stable queens could be a Safe haven during this downturn [Music] Welcome to cnbc's crypto world i'm Tanaya mchill crypto prices are in the Red yet again but off the lows earlier In the morning bitcoin was trading right Around 30 dollars by noon eastern and Ether traded just a little above Eighteen hundred dollars and then There's solana which is worth about Forty dollars but that's off the Overnight lows when the cryptocurrency Fell as much as twelve percent in 24 Hours thanks to an outage Let's talk about the top stories and the First one is actually about that outage Which halted transactions and disrupted Apps on the solana network that includes The numerous nft and d5 ecosystems Running on the platform the solana Status twitter account instructed Validators to restart their systems Which brought the network back online It's the second outage on the network in A month and that same solana status Twitter account reported that this one Lasted for more than four hours Next the department of justice just
Charged someone with insider trading of Nfts a first for the agency nathaniel Chastain a former product manager for Openc was in charge of picking the nfts That would be featured on the Marketplace's homepage a spotlight that Typically skyrocketed the token's value Chastain allegedly purchased dozens of Nfts before they were featured on the Homepage then sold them for two to five Times more once they were featured the Doj charged chastain with one count of Wire fraud and one count of money Laundering and he could face up to 20 Years in prison for each And finally the crypto crash has forced Crypto exchange gemini to cut jobs in a Blog post co-founders cameron and tyler Winklevoss announced the company would Be slashing 10 of its staff as trading Volume of crypto has fallen the Winklevoss twins also said that the Industry is facing a crypto winter Coupled with global economic pressures For our main story i spoke to steve Mcclerk chief investment officer of Valkyrie investments about that crypto Winter and what he expects from the Market in june and for the second half Of 2022 It's june now we started a new trading Month this week been kind of a painful Year for investors in all risk assets But looking back on the past few months
What do you make of the bearishness of The market particularly in crypto a few Months ago We were talking about how you know the Actions of the fed probably cause all Risk assets to go down And they actually have and it doesn't Look like the fed is going to Let up anytime soon they have a mandate To continue to fight inflation and Inflation is extremely high right now uh The cpi prints are in the eight percent Tex mark right now And um Real inflation is probably much higher So the fed is going to continue to raise Rates And they've actually stated that they Would raise rates despite the fact that Markets could go down and will go down So not only have markets gone down we Expect the markets go down even further And When we're specifically talking about Crypto assets um All the crypto markets could go down Another 30 as well So uh we could see ethereum down to 1400 We could see bitcoin uh at 22 000 Which tells me that uh you know markets Will continue to go down and that they Were probably A little bit over inflated anyway you Know bitcoin i think even though if you
Know even though bitcoin could go down To 22 000 uh it's still a great buying Opportunity here if you're if you're Slowly moving in and dollar costing into Bitcoin um you know we also are looking At ethereum there there could be issues With ethereum and the crossover from Proof of work to proof of stake and We're very cautious About that and watching it very closely Uh but uh despite the fact that ethereum Could go down further from here um you Know you know again we don't try to time Markets uh you know We we try to look for value and as long As there's value We will slowly move into that value Give me a timeline for all this you just Said that crypto prices could go down Even further what do you see Specifically happening for the second Half of the year Do you have an idea of when we start to Reverse and go back up Well typically markets do You know go flat during the summer and This summer is going to be no different There's a reason for the old adage sell In may and go away We expect that uh you know our markets Will just slowly melt throughout the Summer and sometime probably in September or october Is when we could see markets start
Ticking back up again Our expectation is that the fed will Continue to increase rates by 50 basis Points in both the june and july Meetings And then in the september meeting Because there's not an august fomc Meeting We will either see them pause ahead of Midterm elections or uh or have to Reverse course if the markets have Shrunk enough I don't expect them to reverse course um And by the way the the september call Could could happen in october as well But likely if there's enough pain ahead Of midterms We will see a little bit of pressure on The fed to uh to hold off for a period Of time So Where can investors find some safety in A period like this particularly Among crypto assets Yeah among crypto assets we're probably Looking at just stable coins and by the Way not algorithmic stable coins that Don't have a one-to-one backing Of assets like cash uh so we're seeing a Lot of people move into stable coins Like you know the gemini token or usdc And slowly earning some yield in some Safer platforms at the moment A lot of buyers though
And fund managers are buying at these Levels though uh even though We expect markets to go down further you Typically don't want to try to time the Bottom so if you're seeing value in a Certain crypto asset Legging in at this period of time isn't Entirely bad uh if you've been on the Sidelines which we have been what should Investors be Looking for when comparing one stable Coin to another what exactly are they Shopping for when they decide to put Money into one stable coin versus Another for other stable coins like the Gemini token or usdc What makes those favorable is that they Have a one-to-one relationship with Dollars in the bank And uh so so Anytime that you want to redeem you can Get your dollars out And you can stake that or lend it out Much like you would with a repo reverse Repo and earn a yield back and that Yield is considerably higher than say U.s treasuries The problem with moving into u.s Treasuries or high quality bonds at the Moment is as you've seen from the last Six months Or a little bit less than that since October Uh
Treasuries and other bonds have lost a Lot of their value as far as price goes So if you're holding bonds yeah you Might get a little bit of yield a little Bit of safety but the price has gone Down for instance 30-year bonds have Been down 30 And that's 30 u.s treasuries as far as Price goes and if the fed continues to Raise rates and yields continue to go up Then that means prices for bonds will Continue to go down So you might have a little bit of yield A little bit of safety but you lose Principle In Holding stable coins you're essentially Holding Cash or something that represents cash And earning a yield on that that Protects you A quick reminder that you can find that Full interview over at cnbc.com Cryptoworld with that you're all caught Up for today but we'll be back again Tomorrow we'll see you then [Music] You
