From Macro Shock to the Next Crypto Move: Rates, Liquidity & AI

will bring improve. And I think that's why today's stuff was really relevant to us because this conversation like said between macro conditions and AI infrastructure and also crypto market to put in a lose exactly at that intersection and when people ask who verifies that and AI treating each and actually what it claimed to do that is like the infrastructure problem we are repeating to answers. So yeah that's pretty exciting to hear from the rest of the speakers and I think you again have enough. Over to you. Yeah thank you for joining us. Our comment victory. So as you just mentioned AI trading we love that topic. And okay welcome and we also have friends from the PWT AI. Welcome. Hello everyone. Hello everyone. Good morning. I'm Volkan. I'm the community manager from PWT AI. Thank you very much for having us. So at PWT we are AI powered media network. The news, podcasts, audio and long form stories into digital content that lasts forever. We use smart AI tools, decentralized technology and other forms of technology to keep your content safe from censorship. We keep it easy to find and we keep it permanently accessible to everyone. If you'd like to learn about what we do at PWT AI, feel free to check out with our profile or check out our websites at www.spamacast.app. Thank you very much. That's the great. Thanks for joining us. And the next is CELIC AI or CELIC AI. Hi everyone. Thanks for having me. I'm Yana. I'm representing CELIC. So at CELIC we're building an AI powered on training intelligence platforms that helps users make sense of what's happening across wallets, markets, narratives and other signals. So basically there are too many data sources for a human to continuously monitor wallets, transactions, market data and many others. And basically I can help organize those signals, identify relationships and explain why something matters. So basically we're not trying to create another dashboard with more charts. The problem we are focused on is the implementation of information. Yeah, so great. Welcome. Yeah. CELIC AI. Thank you for joining us. And so the next is Owen. I am Owen, an author friend with Juan Boehg's. And basically I'm working on research and contents in the broader web 3 and the FENTEC industry. Yeah, thanks for having me. Okay, great. So we basically have like different perspectives from their own angles. And we can just like they can bring different lens into our sessions today. So again, it's great to have all of you here and also for everyone listening, feel free to share your thoughts and questions in that space as we go. Just like yeah, and also feel free to just check out our main post for these X-Base, just like the ping post for Juan Boehg's. Please retweet and also like and also drop your questions so that you can enter our 100 UST giveaway. As always, okay, great. Let's start with the bigger picture. Talk about macro and crypto. So with macro pressure beauty across global markets, how are you seeing the current environment affect the crypto industry and the opportunity being created within it? And so about these topic, CELIC, would you love to share first? Of course, I think that macros become more important because capital is becoming more selective. So when the yields are higher, investors have more alternatives outside of crypto. So the market becomes more focused on real utility rather than speculation. But also this obviously creates a lot of opportunities. And for example, we're seeing more interest in the things like tokenized assets, stable coins, DeFi, and more efficient financial infrastructure. And as more activity moves and chain, the amount of information grows right quickly. So the opportunity is definitely not just creating more data, but helping people actually understand it and that's what we're doing. Okay, great. So thanks for sharing that what you are building currently. That's wonderful. And I think like we always need to, you know, some solid foundation and also solid infrastructure to support the log turn growth for these different sectors of the industry, I would say. And Corrin, would you love to share? Like how do you see the current? Let me put the micro picture in one sentence. Safe money now pays a lot. The US 10 year yield is about 5% that I think the highest since 2007. The Fed raised rates this month. And its share says inflation is the problem not growth. Add an energy shock from the war in Iran and very large government deficits. And money has become expensive. Think of interest rates like, I don't know, gravity. When rates are low, everything floats, including projects with no revenue and rate logo. When rates rise, gravity comes back and anything whose value sits far in the future gets heavier. Crypto sits in that category. So it feels this first. War and Buffet has a line for this. Only when the tide goes out, do you discover who has been swimming naked? That is what is happening now. And honestly, it is healthy. The opportunities are real though. And I say three. First sorting. When easy money leaves, projects with real users and real revenue separate from projects that only have narrative. Second, real yield comes on chain. When the government bond pays 5% that tokenized treasury is no longer an experiment. It is a product people actually want. And third, this is building season. The best time to repair a road is when there is less traffic. We launched mainly this summer and we are doing our hardest infrastructure work now precisely because the market is quite enough to do it properly. Thank you. Yeah, I agree with you. As you just mentioned, like, the need to focus more on the projects or let's say the features with real value, not just narratives. So clearly, that's not the markets are looking for right now. And yeah, toly agree with that. And also building season. Let's just build it. Okay. Thanks for sharing. And the next is Vulcan. Would you love to share? I think the current macro environment is making the crypto market a bit more sensitive to interest rates, liquidity and other things happening in the economy at large. When rates and yields stay high, it can put pressure on the crypto markets because investors become more cautious. But at the same time, I think this conditions can create opportunities for projects that are solving real problems and projects that have actual users. I think the bigger opportunities in building things that people actually need, regardless of whether the market is doing well or not, it has like stablecoins, payments, tokenized assets or even AI, it has like that kind of continue growing because they have actual practical use cases. So while the macro environment can create some sort of short-term pressure, it can also push the industry towards put those with some value outside of just speculation. Thank you. Yeah, I think you just like you brought a solid perspective here. Like the crypto market now is not just like isolated market as it is it was before. And clearly like nowadays, like the global markets move together, there's no more just like crypto bro play our own game and then the rest of markets play their own. It's not like that anymore. Like the whole picture, the macro environment, the macro market is just like connected together. And yeah, I would say crypto and big coins are like kind of like more sensitive to the rates, the interest rates, right? Okay, so thanks again for sharing that. And Katonia, what do you think about this? The macro crypto, the whole market? Thank you so much for the question. I do agree with the rest of the speakers. Well, I also think like the interesting thing about the current macro environment is that it isn't affecting every part of crypto in the same way. So when when you also high you and the liquidity is tighter and the investors are becoming more selective and the expected needs assets are obviously like fill the pressure. So but at the same time, we're seeing a much stronger case for stablecoin infrastructure. So because stablecoins are increasingly being used for some of the very different from simply trading, coming away to move and hold dollar-dominated value digitally. And I think that's pretty great. And that matters even more in the market where access to dollar or efficient cross-broad of payment is like difficult. So when when macro conditions become more and more difficult, the demand for underlying payment and the settlement rules doesn't illustrate disappear. So people still need to move money and businesses still need to settle transactions are people still need to access dollar liquidity and also stablecoin can provide that through programmable like 24-7 digital rails. And that's why I think the more interesting opportunity isn't just like the stablecoin is taking itself. I'm thinking it's everything being viewed around it. So say faster settlement, lower cost transfers, wallet infrastructures, untamed payment system, also compliance infrastructure, and eventually programmable payments between software and AI agents. So you're already seeing like traditional finance institution move further into this direction. I think CT&R Coinbase put ownership this week to support stablecoin payments for institutional clients while I think SOFI has been the big on that reason it's all like stablecoin for card settlement. So I think the macro environment can eventually create a strange divergence, but it can be a headwind for speculative crypto while being a tailwind for crypto infrastructure that solves an actual financial problem. And as a part, I find like more interesting or like most interesting because and from like a cotton years perspective that's the same principle applied beyond payment. So as more economic activities becomes programmable and more AI agents start like interacting with these financial rails. You need infrastructure that can handle those transactions efficiently and reliably. So I think the current environment has forced in the industry to answer a useful question, which is are we viewed in things that people need because prices are going off or are we just viewed in infrastructure people need regardless of what prices are doing. So I think stablecoin infrastructure is one of the clearest examples for me of the second category right now. Yeah, so that's what I think. Yeah, great. Totally agree with that. And also I think one of the biggest macro variables for markets is just like interest rates and liquidity. And also and meanwhile, I think the crypto market is becoming more sensitive to macro conditions than it was a few years ago. But on the other side, I would say like and also just like as you guys just share like there are still opportunities that emerge emerging right and when markets are going through periods of reprising and uncertainty. And okay, so that also that's just like talk about market signals. So as Cheshiree also writes and markets reprise the path of interest rates, what does this shift in rates and liquidity mean for crypto and broader digital asset market? Young, short term price movements was seeing those are you watching closely to understand where the crypto market could be heading next. So, um, Vulcan, would you love to share first? Um, I think rising treasury units and title liquidity creates eight of five variables for crypto because investors become more selective. And yeah.