job: from bloomberg world headquarters in new york, i'm joe weisenthal. romaine: let's take a look at where we stand in the markets. joe: the question is --"what'd you miss?" taylor: pairing losses into the close. bitcoin plunging more than 30% and starting to make a comeback,

cutting that flag to less than 10%, but either, doesgoing -- either -- ether, dogecoin taking losses as well. joe: elong goes back and forth. who knows what he will say tomorrow -- elon goes back and forth. every time i see a chart with lines, i have to remind viewers that i'm not abigail doolittle, so i don't know exactly what that means. when i see one line going through other lines and point down, it's not a good formation. for more on the market, what is happening in the world of crypto and everything else?

katie, my son woke up crying at 1:30 in the morning, so as i usually do when that happens, i check my phone, and i saw the crash happening. katie: those lines don't lie, and you did see bitcoin's price move a little bit back towards its 200-day moving average. maybe that was acting as a magnet, but i think the bigger thing is that you saw the crypto protection team out in force today. cathie wood, even elon musk, who, like you said, goes back and forth. to see all those three come out and really say that they are holding blind, cathie wood in particular reiterating that price target. you did see that huge plunge,

still down over 9%, but we are not talking about 30% anymore. romaine: it is great that you mentioned cathie, michael saylor, elon musk, some big-name people coming in to reiterate that they are holding the line. i'm curious about some of the inflationary pressures and inflationary fear and how much that played into not only the selloff we saw in stocks, but also to a certain extent, the rebound we saw in crypto in the middle of the day. katie: if you look at some of the measures that were really spooking stocks in the last two weeks, you look at breakeven rates, you look at commodities, all those have been evening out. copper, soybeans, lumber, all down from their peaks. the fed saying they expect any

burst of inflation to be transitory because, i mean, you have this unprecedented boom in demand hitting supply chains, so there has been really disrupted by the pandemic, but as some of those problems get ironed out, some of that has been easing. you see these inflation pressures come down a little bit, and maybe that is part of the reason you sawtek kind of lead us out of the dark and lead that stock rebound specifically. taylor: can we talk about the fed meeting minutes? we thought we were not even going to talk about talk about tapering, but the fed meeting minutes saying we might have to taper. morgan stanley moving up the timeline saying we might have to lay out those plans, maybe september. katie: i am dying to talk about the fed minutes, so i'm glad you brought it up. there was one line that mattered, and it was that it

might be appropriate at some point in upcoming meetings to begin discussing a plan if the committee's targets are met, so it was kind of amazing you did not see more of a reaction in markets. that's not really much of a move , but there's a number of nuances here. we don't know what "a number of participants" means and we don't know who it was, if it was the real core of the fed committee or if it was some of the outsiders who have been pretty vocal in terms of breaking away from the consensus, so we will see. it is also important to note that between that meeting and right now, we got a horrible jobs report for april, so that probably bought the fed some time in terms of pushing back that taper in discussion. romaine: cross asset reporter and mine aficionado -- line

aficionado, katie, thank you for joining us. according to people familiar with the plans, the company has discussed plans to eventually list publicly, spinning out from company -- spinning out from parent company alphabet. taylor: this is largely unprofitable businesses. joe: are they going to mine and astronaut with one of those other bets? taylor: very interesting to see that they are indeed trying to look at raising about $4 billion for some bets, so we will keep our eyes peeled for more cues on waymo.

romaine: will we? taylor: we will. general partner of crypto venture capital firm turns us next. the only thing you need to know -- everything was in the red i said earlier. there's so much more than that. this is bloomberg. ♪

>> we go through soul-searching times like this. >> imagine roots with no speed limits, right? nobody knows if you should drive fast for slow. then you have speed limits, and everybody knows what the rules

are. we need that in crypto. >> there's a lot of volatility in it, but right now, it is not at the scale and does not have the reach into the economy. >> our conviction is as high. the one thing that has changed is the environmental concerns around bitcoin in particular have caused people like elon musk to pull away and say, let me make sure i understand this. we believe that even this is going to change. joe: there you heard some of the reaction to today's move. thank you so much for joining us. crypto loves to talk about being decentralized and robust, etc. what does it say that maybe a

few tweets from someone like elon, even if that is not the main story, we have certainly seen times when a few tweets from someone like elon can change the main story. >> for those of us who have been in crypto multiple cycles, 30% is just another wednesday in crypto. it is a volatile asset class, but the thing to remember is bitcoin is still up three hundred percent year-to-date. these are healthy corrections. if you look at the actual data of who is doing the selling, these are primarily new market entrants, and we view it as a healthy correction and are staying focused on the long-term. romaine: this was still a pretty epic drawdown. when we talk about the legitimacy as an asset class, part of someone's portfolio, how do you approach them with the

idea that they will have to deal with some of these drawdowns? >> the important thing to remember is that nothing about bitcoin has changed. it is still using the same consensus. it still has the same system, and it still serves as a global liquidity instrument. to the extent those things are all true, the only thing that has changed is bitcoin has gone cheaper. frankly, this is a fire sale. if you like bitcoin at the $50,000 price, you should love it at $40,000. taylor: well said. i am one of those who says corrections like this are healthy. does that change maybe the nature of the selloff?

>> you cut out a little bit. did not entirely hear the question, but these are healthy selloffs when they are primarily regional driven and new market entrants are coming into the market and panic selling when we are an emotional market like this. if you look to global treasuries and what institutions are doing, they are holding onto their positions. you want to look not just what folks are saying but to what they are doing. joe: your industry has a tremendous ability to just create new coins. there's only 21 million bitcoins that will ever exist, but every day, there are new coins. yesterday, we joked that there

was a new coin named after me. how much does it take for players in crypto to create new coins of their own, new crypto projects rather than building on an existing one, end up swamping the market with so much demand and limiting the supply price? >> we tend to see in the bull markets, that is absolutely true. what we focus on are companies building around digital assets. those are truly the indicators you should be looking at when measuring the health of the market. these are founders that are building equity companies, that are leveraging digital assets because the end user is meaningfully using service. it really does not matter what tokens you are risking or who is coming out with any joke coin. these are substantive use cases,

and that is what we focus on. romaine: let's talk about the prospect of regulation because this is back in conversation. even before today, there was a lot of talk about it. it was a hearing on capitol hill today that got overshadowed by a lot of the market moves. are you welcoming to some degree of regulation, of signposts, or does that sort of road the appeal of what bitcoin and crypto is to a lot of people? >> there is a common misconception that crypto is an industry that is not regulated, but crypto has been on the desk of every three or four-letter organization you can think of since 2015. corporations, venture firms, nonprofits are pouring in millions to making sure we standardize the language and are doing everything by the book to the extent that we can with this new asset class to ensure this

technological paradigm shift actually happens and we can't the retail investor and institution in mind and do things by the book. joe: how long do you see people getting excited, and how much do you see of that taking away from the coin itself? >> speculation is not a bad thing. speculation is often necessary to get people to look up from their desk. we are seeing plenty of substantive use cases being built on top of bitcoin with bitcoin, and outside of bitcoin. seeing indicators like that is

necessary for this space. taylor: always appreciate your time, breaking down today's broader moves and putting it into context. stay with us. we continue the conversation. and what happens to decentralized systems under extreme volatility like esau today? that's next. this is bloomberg. ♪

drew -- joe: let's talk more crypto. joining us now, community member

of the maker debt ecosystem. i guess what is interesting to me on a day like this -- we did have extreme volatility in the crypto space, but it did not seem to break. >> yes, i see volatility like today, and i don't get blindsided anymore. i have been in this space for a number of years now, and it is just another -- what is this? wednesday yeah, another wednesday. romaine: we have seen a new investor class come into the space here, so it's not necessarily some of the cowboys who got there early. they understand the volatility. when you look at this new breed of investors that come in, you included general volatility. how would you talk to people about the volatility? is this here to stay?

is this something they have to live with, or will we see less and less of these types of drawdowns? >> i think that is entirely dependent on the narrative. if the fed had not printed god knows how many trillions of dollars, i don't think we would see this volatility in bitcoin, so it is very much cause-and-effect. i think the volatility will go down a little bit am here, but the cycle that continually happens is people build up leverage, they get overconfident, and then they get crushed. that is due to the fact that a lot of these assets are extremely speculative. i think the volatility will go down, but it is certainly here to stay for a while. >> you have some stress on the exchanges. are there signs you need to be firmed up to be able to handle more volatile days like this?

>> those exchanges handle the on-and-off brand of the business well, but it is hard to keep up all of a sudden. full disclosure, i own some of the tokens i am about to reference, so i have a bias, but i think there is a shift toward a decentralized exchange. joe: let's talk about the decentralized exchanges, decentralized finance maker, which uses over collateralization to create a coin that roughly trades in line with the dollar. that's all great. it's very cool. the technology is very impressive. i am generally impressed -- i am genuinely impressed, but what is it all for? what is the real world advantage, or is it really just about creating more ways to trade more coins?

>> the real world stuff is finally happening. my company, rwa, stands for real-world asset company. for us, it is anything where the consensus mechanism is not a blockchain, that we call a real-world asset. we are able to -- it is almost a new paradigm because we are able to let people come to the protocol. for instance, a loan originator will be able to come to the protocol, so i think you are seeing immediate real-world utility. romaine: is the idea that this becomes something they do in the short-term or are they sticking out for a long-term strategy? >> i think it is primarily long-term. you see they're interested in swapping out facilities they

have within existing bank and come to a decentralized protocol, not just because it can offer better rates but because it has better terms. joe: explore this more clearly. who is getting better rates? i hear about great lending rates and apy's that blow your mind, but what about from a borrower perspective? are there currently protocols that if i want to borrow money for a house, car, credit card, where i can get something competitive? >> yeah. maker down generates the liability -- joe: but this is collateral and lending, right? >> i can give you a real example. there's a borrower called success capital. they approached us through our decentralized governance process and work able to get voted in.

their assets are credit pending. they got out there and by a piece secured, build up a store of assets around it, and maybe the whole process takes six to nine months, and in the interim, they put the senior leader in trust, and that trust acts within the will of the maker holdings. their legacy cost of capital is much, much higher than that. romaine: great stuff. appreciate you taking time to be with us. actually, you know what? this is the time of the program were normally caroline asks joe what she is watching -- what he is watching for tomorrow -- you ashley have one? i was going to ask taylor since

she is our guest. joe: you got to look at the chart. it actually rebounded today. taylor: is this what this show is like every day? i'm totally lost. "bloomberg technology" is up next. romaine: have a great evening. ♪

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>> from the heart of where innovation, power, and money collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪ emily: this is "number technology." coming up in the next hour, a stomach turning day for crypto investors. it coin plummeting 31% in the

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