no expensive machines, no expensive memberships. get off the floor with aerotrainer. go to aerotrainer.com to get yours now. >> good morning from bloomberg's middle east headquarters in dubai. it's "bloomberg daybreak: europe" with manus cranny. and annmarie hordern in new york. these are the stories you set your agenda. opening to talking about talking about tapering. at some point, fed minutes give the market plenty to think about. but stocks have no direction. we could yo-yo and takes another turn with bit coin

plunging and rallying 30% in the same day. cathy wood tells bloomberg it can still hit $500,000. and the biden administration changes tone on northstream saying stopping it is a long shot. state department also weighs sanctions on its builder. 6:00 a.m. in london. it's just gone 9:00 a.m. in the difc. so it's time to talk about talking by tapering. annmarie, thrs the minutes that we're supposed -- this is the minutes that were supposed to be a snooze fest. you weren't wrong. you were strategically misguided and didn't quite hit the nail on the head. but i would never call you wrong, the bottom line is this. it wasn't a snoozefest. the bond market reacted. and what caught my eye, annmarie, the fact that the bond market wasn't more virulent in its reaction. and i put this down to the fact that the comments not time to

talk about tapering and trumped the minutes. annmarie: that's the whole thing, manus. the minutes are retrospective. these minutes that are out were before we had that dismal april jobs report where also in that april jobs report, we had a revision on the march report which were very good. and this is what they were reacting to. also, the minutes a number of fed officials. what do you make avenue number? we know clarida and bostic are not onboard and after april, what happens now? do you think april was too much of a dismal jobs report for them to say, ok, we'll wait on talking about talking about tapering? manus: a lot of people are saying that april was a nominalist and this will reignite the debate and j.p. morgan's chief u.s. economist summed it up. i know our producers obsess about this quote so let's do it. it was surprising in power after the meeting in the press

conference that it wasn't time to talk about tapering. and they're talking about it now. and j.p.m. say it's possibly up there as a june, possibly on the -- and by the way, annmarie, fed funds got their hiking boots on and put on 20 b.p.s. yesterday for 2022. annmarie: we also manus, we have to say we caught up with the atlanta fed president rafael bostic. he said it's not yet time as i mentioned for the central bank to begin withdrawing monetary policy support. so he's not part of that number of fed officials. but listen to what he had to say. >> my job is to look at the data as it comes in, collect as much on the ground intelligence as possible. and then make the judgment about where the appropriate stance of policy is. if we see that substantial significant progress, i'm advocating that we move our policies tomorrow. annmarie: rafael boston he can there. let's take a look at where we trade this morning following those fed minutes. if the fed minutes weren't a

snooze fest global equity markets are a little bit of a snooze fet. we're steady. asia pacific down .2%. euro stoxx 50 futures up .6%. wheel u.s. equity futures are pretty much flat this morning. i put in iron ore because under $200 a ton. manus, what china is talking about, the cabinet, kind of spooking traders. they're calling for tougher oversight and cities now saying hike commodity prices are now a concern for china. will we see controls? and then bit coin, i don't know where we begin on this. $39,000 handle right now. john arthur put it very well, manus. bit coin goes a bit crazy and makes the point the size of a top are there. elon musk went on s. in l. -- s.n.l. and said the cryptocurrency has rissfrn the dead before. joining us is henrietta packerman head of investment grade credit europe. we might get your take on bitcoin a little bit later but

let's start with the fed minutes. what did you make of them given the fact of the timing of when the fomc met? >> yeah. i think they -- the fact that they're talking about tapering at some point given the numbers that we've seen out of the u.s., given the stimulus that is coming to the u.s., and not all of it has come through yet. makes sense. i do think that it's a bit of a surprise that it was in the minutes as we saw them. however, i do think they are going to be trying to engineer a soft tapering if they can manage it. so starting early, giving themself the option going forward is i think what they may have been trying to do here. i think -- yes. market was probably expecting that conversation a little later on. but it does make sense to talk about this. and the numbers are looking good. and subject to what happens to

covid and so on. but it makes sense. manus: you're adding to the legs con, henrietta, -- lexicon, henrietta, the soft paperer. let's ex-trap plate. -- -- extrapolate. june, jacksonhole and what are the camifications for credit in a soft taper? >> you know, i think they're going to talk about it in more defined terms at next meeting. i would be surprised if we get too much before autumn or even -- or even winter. given the cycle that we've seen in terms of -- in terms of covid. but if we continue to see good numbers, if we continue to see the part of vaccination and the cases at that we're seeing at the moment, i would expect that to build up over time. we saw the rates market.

you mentioned what happened on the shorter end. i think that's where we'll see more of the action. if you look at 10-year we're still at 1.66% this morning. so some of that is being pressed in on the longer end, that is. annmarie: yeah. we saw the repricing in the short term, interest rate market, henrietta, do you expect the repricing to continue as we ramp up toward the end of the year? >> i think, you know, it is going to be dependent on the numbers that we see. but if we continue to see strong numbers, that sort of liftoff will be brought forward. and if growth continues, that's not necessarily a bad thing. manus: i like what you say here is that valuations have front run fundamentals. the fundamentals, however, are catching up. and you talk about this in both the equity and the credit valuation matrix. yesterday, baronberg didn't know what a garden variety

correction was suspect maybe build on that narrative. if fundamentals are catching up, how -- are we topping out, with equity markets first of all, are we near the top and could we have a garden market variety correction and if so, how imminent is it? >> i think -- i think, you know, you touched the nail on the head earlier on is that it is searching for a bit of direction at this point. given where valuations are. and so we are in this situation where, yes, valuations, both in the credit market and the equity markets, have front run what we're seeing on the fundamentals. fundamentals are catching up. which is good. but we're likely to see less exciting returns going forward. and a pickup in volatility as -- inflation, for instance, is going to be a topic for the next few months. sneefment do you think with fundamentals -- annmarie: do you think with fundamental returning, do you still see the rotation trade also continuing? >> i think, you know, what

we're seeing on the equity side is that sectors like the tech sector are vulnerable to what happens on the rates side and what inflation expectations are. given -- given the sort of high duration as it were. so probably more vulnerable as we've seen to volatility. and there's still some catchup a bit more to be had, more on the value side, maybe more on financials as you see an improving economy. and so yes, you know, i think that is still a trend at this point. manus: ok. well, we can talk about remarkable exuberance in just a moment. henrietta, the words from -- from the e.c.b. henrietta pacquement. and news from hong kong. >> thanks, manus. israeli prime minister benjamin nettenu is rebuffing calls for a de-escalation of the conflict with hamas. he says that air strikes in the

gaza strip will continue. until israel with restore security for its citizens. the dow jones is reporting a cease-fire could come as soon as tomorrow. so far 219 palestinians have died. and 12 israelis. in the u.k., prime minister boris johnson says he's increasingly confident that vaccines are working against all coronavirus variants. it's raising hopes that the last lockdown rules will be lifted as planned next month. the spread of new mutations of the virus had sparked concern that the government would be forced to delay its plans. vegan food and drink maker oatly group has priced its i.p.o. at the top of a marketed range. raising more than $1.4 billion. the offering underscores the jump of plant-based products into the mainstream as consumers seek alternatives to traditional meat and dairy products. the listing gives swedish oatly a market value of about $10 billion.

and china has released the first photographs from its mars probe four days after it landed. the module had been in orbit since february and touched down this weekend. it will now explore the service near its landing site. china is only the second country after the u.s. to send a rover to mars. global news 24 hours a day on air and on bloomberg, quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie? annmarie: thank you so much. just ahead, the crypto yo-yo, bitcoin loses 31% of its value in the morning and surges 33% in the afternoon. what's next? for the virtual currency? we'll discuss that next. this is bloomberg. bloomberg.

>> i think what's happening

right now is because the stock market, the highly volatile part of the stock market, the innovation-oriented part of the stock market has gone through such a correction which has been flamed by inflation fears. i think the correlation is among volatile assets are going to one right now. and that's including bitcoin. >> so bitcoin, you at one point i think back in april told dow jones that it could go to $500,000. you do still hold that target? do you still think that's where we're headed? >> we do. i do. yes. mandra is our crypto analyst and we go through soil searching times like this and scrape the models and yes, our conviction is as high. the one thing that has changed here, however, is the environmental concerns around bitcoin in particular have caused people like elon musk to pull away and say, wo, wo, wo, let me make sure i understand this.

and we believe that even this is going to change. because first of all, right now, the percentage of bitcoin mined with renewables and hydroelectric power is quite substantial. i think in china, it's over 50% in renewables. we believe that bitcoin mining integrated into the distributed grid and by that, i mean solar roofs, power walls in homes, utilities, merchant power producers, starting to include bitcoin mining and the ecosystem. why would they do that? they would do it because renewables are intermittent power sources, right? weather, is it sunny or not? wind, is it windy or not? and bitcoin mining could take off if there's excess energy from solar being loaded into power walls, it can be

offloaded into bitcoin mining and the whole ecosystem therefore becomes much more economic. manus: the ark investing cathie wood and why bitcoin can go to $500,000. investors, the crypto yo-yo, the dedge tal token lost 31% value in the market and searched 30% and that's whalled whipsaw. the sheer number of trades, on several exchanges, we caught up with brian brooks on their service and the return to normal. >> the issue we have quite frankly is that we have way too many customer support issues on back log. and i want everybody in the finance community to know we are all over this. i mean, we have three or four major initiatives that are going to fix that in the coming weeks and months. annmarie: brian brooks assuring customers the crypto exchange will return to normal service

soon. let's get daniberger. you've been digging through the action the last 24 hours. good luck on you. and who's been selling and buying? dani: thank you for that, annmarie. well, look, in the words of crathi wood it's all out -- kathie wood it's all out capitulation. and these outages, it's the retail community as part of it being finance or be it coinbase but these leveraged institutional players that were also west -- reeling for maybe some margin calls. and part of the way you can kind of see that. so this is from t-3. basically the vix or ether, it goes above 100 which is something it hasn't done since february. but look at ether. this is wild. it goes above 200. that's some really extreme volatility that again, suggests this leverage community in the futures market is part of what punished bitcoin. now, as to who's buying, there was a really big support

yesterday from sort of the three horsemen of bitcoin and crypto if you will. so we have justin sun on twitter saying i'm buying. i just bought ether and i just bought bitcoin and cathie wood says it's going to $500,000. and elon musk the twetter command of bitcoin saying that tesla has diamond hands. and not giving up there. so these three definitely allowing people to jump back in and buy bitcoin. bass if you liked it at $60,000 why wouldn't you like it at $30,000? manus: yeah. there you go. those are very -- a whole vested interest in having a buy call recommendation. i wonder why, dani berger. thank you. and the mistress of market is henrietta pacqument, i struggle with cathie wood's narrative the equity market volatility that caused the crypto market to implode. do you? >> i think that's a bit of a stretch, too.

bitcoin is a market of its own and arguably an asset class of its own. and today, it's in its infancy. and not a fully. we saw the comments from the chinese authorities, for instance. there's still some comments that will come out of the e.c.b. in terms of its nature. so it isn't an established asset class yet. it's still quite young. and you can see that in the technology issues that cropped up with heavy trading yesterday. as well. and so i think you have to expect volatility. and i think there is a degree of it being specific to bitcoin at this time. given that it's still quite a few young asset class and quite a young tool. in the armory. annmarie: bitcoin at this point is synonymous with volatility but many say or were saying this could be another use as

gold. like a safe haven. but there doesn't seem to be anything safe with what we saw yesterday. does this make the case of potentially moving money into gold from crypto and gold potentially breaking through $2,000? >> i think it's a different nature to gold. by the fact that it is very true. and i was talking to a colleague of mine. and it's something that you can walk around with. you have your clothes and travel and pick up your bitcoin without it being an issue. that's not something that you can do easily with -- easily with gold. and so it does have some interesting characteristics. but i do think they are different from gold. and at this point, given there's a degree of regulatory risk, there was a comment about sustainability as well, it is not quite established so you have to expect volatility. that may go away as the system

improve, the access to bitcoin, of the exchanges and so on improves going forward. but it's still got a few issues that it needs to iron out to lose this volatile characteristic. manus: yeah. and about the network that perhaps one should bet on and not the token. henrietta let's go back to ground zero, home for you which is the credit markets. g-3 balance sheets, $6 trillion at the peak, the pace of addition to balance sheets is decelerated by 80%. he says you need to reconsider liquidity-driven trades. given the velocity reduction or the deceleration in g-3 balance sheets are you reconsidering credit positioning and liquidity positions? >> i think that's the theme for the second half of this year is that reduced liquidity in the markets. and that is going to be the

challenge for central banks to deal with. as we go along. that being said, you know, why did we have that is because we've had this huge exogenous shock last year. so there is an explanation to that. and where healing slowly from that -- from that exercise. and so i think fundamentals are going to be supportive at this point if we continue. but yes, this liquidity theme is what is going to be defining. and the reason why we're likely to see a bit more volatility be it on the equity side or to an extent on the credit side. what we've seen so far this year is credit spreads actually being quite well behaved. they haven't done anything particularly exciting. the volatility has come from the rate side which makes sense. because in the first quarter of 2020 rates moved in this -- in this first half of the year. so our take on the spread side

it is an asset class that central banks want to keep well behaved. so we expect credit spreads to be range bound at this point and to see more volatility maybe on the rate side. annmarie: henrietta? >> yes. annmarie: we're running out of time and will leave it there. thank you so much for joining thus morning. henrietta pacquement wells fargo assessment management, head of investment grade credit europe. the details next. this is bloomberg.

>> if russia acts aggressively against us, our partners, our allies, we'll respond. and president biden has demonstrated that in both word and deed. not for purposes of escalation,

not to seek conflict, but to defend our interests. annmarie: secretary of state anthony blinken speaking after his meeting with russian foreign minister sergei lavrov on the council. the u.s. waived sanctions on the company overseeing construction of nord stream q. by -- the biden administration says stopping the project is a long shot now and the gas pipeline from russia to germany is 90% complete. joining us now is bloomberg reporter bruce einhorn. bruce, what were the key points blinken raised and the russian s' response of those? >> the secretary of state brought up i prisoned opposition leader and parts of ukraine, that said he also suggested what he -- the state department called enhanced cooperation on issues like afghanistan, the iran nuclear program, north korea. and so lavrov said that we had,

quote, constructive talks. so there are signs that the two sides may be getting past some of the most contentious issues they've been facing for a while. manus: the other major issue of this new administration has been how to tackle nord stream, the pipeline controversial for the biden administration. where do we stand right now? >> so the biden administration has essentially taken the seam position as the trump administration which is that the project undermines european security. because it ties european countries more closely to russia. but in a report to congress on wednesday, the state department said that the pipeline and the chief executive mathias hornig are engage in sanctionable activity under u.s. law but that the administration is going to waive the penalties for national security reasons that avoid a confrontation with

german chancellor angela merkel's government. and that's in keeping with biden's policy of trying to work more closely with allies despite disagreements a very different approach from say the trump administration's. manus: thank you so much. (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it.

give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

>> good morning from new york. this is "daybreak europe." talking about tapering at some point. fed minutes give the market plenty to think about. the crypto yo-yo takes another turn with bitcoin plunging and rallying 30% in the same day. it can still hit $500,000.

the biden administration changes tone on nord stream 2 saying stopping it is a long shot. good morning. 6:30 a.m. in the city of london. 10:30 a.m. in the difc. it is all about the fed. what are they doing? they are starting to think about thinking about even having the conversation about tapering. the question i pose, and i was wrong, but the question is what will change now that we had that dismal april jobs report? manus: a number of voices have said there are major potholes in the u.s. recovery. we are going to be in for what is being called soft tapering at the back end of the year. it is going to be short and dominated.

the long end is not badly behaved. but you know who got their hiking boots on? it is a short and soft taper narrative. annmarie: another thing yesterday was a 20 year auction that was not so hot. jp morgan's chief u.s. economist summed it up saying it was surprising insofar as powell after that meeting in the press conference said it was not time to talk about talking about tapering. and they are talking about tapering. a little bit different how powell presented the meeting when you see what the fed minutes say. a number of officials. matt: -- manus: powell came out after that april fed meeting and reaffirmed, we are not there yet. we got further ramification if you wanted. i would say the fed is heading

into division. the atlanta fed president said it is not time for the central bank to begin to withdraw monetary policy support. let's take a listen. >> collect as much on the ground intelligence as possible. make a judgment about where the appropriate policy is. if we see that progress, i'm advocating we move our policies to tomorrow. manus: the key takeaways from these men, annmarie -- these minutes, annmarie thought it was going to be a snooze fest. do you think jp morgan had a point, it could be a june conversation to begin talking about talking about tapering? >> yeah, i know annmarie was

excited, but a lot to talk about here. it is starting where we should not be so excited. the fed wants to give advance notice. they mentioned that, they will give a lot of lead time. they don't want a taper tantrum like we have. seen before. . analysts are betting 2022. they are going to have to start talking about it soon. the fed for its part does not want to leave anyone surprised. even though we don't know how many participants back the sentiment, the fact there was discussion even before chair powell had been so adamant about not starting those talks, is something of a hawkish signal to the markets. in recent days, robert kaplan has said publicly that he wants that discussion sooner than later. he is probably in the minority.

he is one of those two or more. it should not be surprising to have brought this up. the private discussion made that happen. we will see where it goes from there annmarie: one thing neal dunn i said yesterday, the minutes always give more weight to the hawks. we will see what happens. do you see any prospect for the fed to weaken its stance on the inflation narrative, that being transitory? >> a lot of noise in general on this issue. i would say we will have to think they will largely stick to their guns. i would point to one other headline. based off the supply shortage, that could mean higher prices beyond 2021. this gets to what we were talking about yesterday about

wanting to hear a definition of what transitory means. maybe they are giving into this thought they are feeling more pressure to underscore, they realize inflation could persist longer than investors and businesses will be comfortable with. it is not just some and of your story -- end of year story. it could sway more fed officials to the thought they need to adjust the timeline. i will add today was a tricky day for data. we saw canadian cpi at its highest in almost a decade. u.k. cpi bang on expectations. there has been this debate even with an investor unities and the economist community about when and how this might fade.

the fed's ability to win trust is being put to the test. manus: the longer run inflation expectations have been anchored. this is the debate, that the fed could be late deliberately. they want to run it hot. the ecb meets a week before the fed. this is going to be the new market narrative. the fed behind the ecb and indeed the -- as well. >> i wonder what it will take to calm the markets. some metrics show investors still believe the fed will act on its transitory nature and that if they see inflation higher, we will start to act to defend that. there is still this debate.

across many sectors what caught my eye was the fannie mae report showing higher demand for this summer than the expected earlier for housing. that is an area that has been running hot. different pockets of the economy may be talking points for the fed to have to defend this overall transitory inflation narrative. really convince people they are on track with their strategy. >> kaplan has been saying we have real access when it comes to the housing market. let's get a recap now. >> a 30% plunge in the morning, 30% surges in the afternoon. that was the roller coaster ride bitcoin took investors on yesterday. outages on major crypto exchanges.

ether down over two days. the u.k. rethinking commuter travel. a new season ticket will be available to people who only go to the office two or three days a week. the biggest overhaul since where -- since railways were privatized, the government is creating a new public body, great british railways. 35 republicans broke ranks with their party leadership to support a probe. it now goes to the senate where its fate is uncertain. the plan calls for an independent report by the end of the year. the founder of bytedance says the company that owns tiktok is stepping back from running the firm ahead of its highly anticipated market debut. he will hand the chief executive role to the human resources chief, his old college roommate.

the billionaire entrepreneur is to remain chairman with a focus on longer-term strategy. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> just ahead, oil is steady near a three week low after a market meltdown triggered by fears of rising inflation. ♪

>> the team has been agile. we have always built a strategy in place ready to go whether there is a change in travel restrictions and whether travel bubbles form. overall, i think a trouble bubble is an important part of the recovery. china for example. because of that, our hotel business is faring really well. the u.s. and mexico, that is a trouble bubble. the u.k. and the rest of europe will become a trouble bubble. -- travel bubble. we try to best estimate where the bubbles will be and we plan a marketing strategy toward that. the key is where would be your market and have plans in place.

>> on vaccines, do you have a corporate policy? >> we encourage our employees to make their own decisions. vaccination does play a key role to resolving the situation and getting out of the pandemic. vaccination is not the only thing. we continue to be vigilant in health and safety protocols, hygiene, and hotel standards. >> in terms of long-term strategy, you take things very meticulously. do you have a specific -- not specific. a rough number how many properties? >> we take things step-by-step. we are a brand that is a

collection. we are not a chain hotel where -- it is about building quality properties, properties that celebrate the sense of place, building landmark locations that will deliver amazing experience for customers. manus: the rosewood hotels ceo speaking to david ingles. to the oil markets, the lowest price in three weeks amid the broad market slump as the u.s. crude stock the largest increased since -- saw the largest increase since mid-march. our bloomberg energy reporter is in singapore. we are inching each day to news flow which is more bullish about

the iran deal, the jcpoa, the u.s. getting back to it and sanctions being lifted. the market is already pricing in iranian barrels. what is possible in terms of flow by the end of the year? >> i think that is why we are seeing that drop to the three week low. that is helping. yesterday we had a top european union officials say the u.s. and iran are close to reviving a nuclear deal. they could begin to ramp up production. we are not going to get back to the 2.2 million barrels a day they had before the trump administration approved sanctions on the country. agreement on a deal is expected. it will only bring back a partial return of oil exports from that producer. citigroup is expecting an

initial 500,000 barrels a day increase in exports starting around the middle of the third quarter. no one knows how much iran is exporting right now. he could be between 700,000 to one million barrels a day to countries including china. that adds quite a bit, but that is not as much as they could get to above the 2 million mark. >> they are ramping up internally to try to get there if the jcpoa does go ahead. it is very different right now when you look around the world what is going on with covid-19. india is still dealing with a spiral of the pandemic. sitting in new york city it feels relatively back to normal. how is the pandemic affecting the market as a whole? >> there is really that dichotomy. new york and the united states, demand is coming back when you look at a few months ago.

people are going to be traveling more because they are vaccinated. likewise in china, chinese demand robust, but you look at india, indian demand has dropped because of this historic covert outbreak the nation's dealing with. -- covid outbreak the nation is dealing with. that is affecting demand for oil products. people are not driving. so indian oil has reduced the run rates of refineries by about 25% for the second month in around. that is lessening the demand. there is this poll and push in the market. you look at the united states and it looks rosy. you look at india and it is a different picture. manus: the other major consideration is the three stage

return of opec and opec-plus barrels to the market. 600,000 in may. 700 in june. do you think the pathway to returning those barrels will endure? do you think they should reconsider the pathway of the return of the barrels? >> look at prices. we are at a three week low right now, that is true. before, we were at $70. that is not even a pre-covid level, that is the highest in years. you look at the strength of the prices and you look at everything put together, opec is going to be looking at the recovery, looking at the rollout of vaccines. obviously india is an issue. iran coming back to the market, there's going to be drama. but overall, prices are strong.

the demand outlook appears rosy. it is going to be even better when we get through this. the traders are expecting opec to follow through with what they put forward at this is an evolving situation and it could change if there is a big outbreak. obviously opec has to watch it very closely. nejra: -- annmarie: thank you to bloomberg's energy reporter in singapore joining us. just ahead, the crypto yo-yo. bitcoin losing 31% of its value in the morning and surging 33% in the afternoon. what happens next? this is bloomberg. ♪

>> this is an asset with good fundamentals that is subject to volatility. >> we have roads, but no speed limits. no one knows how fast they should go. we need speed limits in crypto. >> a lot of volatility. right now it is not the scale and does not have a reach into the economy that has systemic implications for us. >> 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 even this is going to change. nejra: crypto --

annmarie: crypto assets plunging then rising. a string of bad news. first elon musk complaining about bitcoin's fossil fuel usage. the pboc added to the negative sentiment by reiterating digital tokens cannot be used for payment. joining us is bloomberg's crypto czar. one thing that struck me yesterday was the fact that she saw capitulation flashing on her screen. was this a buying opportunity? do you expect the price to rise? >> it could be. bitcoin went down almost 30,000, now it is back up around $40,000. it does look like capitulation but a lot of people were taken off by that. you can say it was cost, but there was a significant number of retail investors who took it on the chin. there were all sorts of twitter posts and everything going around saying keep buying on the

dip. what do you use to buy the next time? definitely for people who had just a small portion or might have been saying i don't want to buy at $55,000, this could be an entry point for somebody longer-term looking to get in. manus: we do have to have a health warning which is obviously, kathy wood, elon musk, etc. all have a vested interest in remaining fully committed to the big story on this. how much credibility does kathy would have she says it is the equity market volatility causing an implosion in bitcoin? >> look, kathy would -- cathie

wood and her firm are into crypto and not everyone is. people do love the asset class or hate the asset class. there are more people getting in, it is becoming more mature. there are more big institutions getting in. it is definitely somewhere it was not a year or two ago. it still has this volatility. even bitcoin can go up or down 30% easily in a day as we just saw. manus: absolutely. i don't know that i have exposure to it. thank you. bitcoin bounces by 4% this morning. annmarie: it is still under the $40,000 mark. interesting to see how the rest of the session, but coindesk.

-- bitcoin does. enjoy your weekend. anna and mark with the open next. ♪ ♪ ♪

look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. (woman) i don't want to look like this anymore. (man) what is happening to my body? (woman) why can't i lose weight? (announcer) you may be suffering from insulin resistance. measure your waist. females measuring more than 35 inches and males measuring more than 40 inches may have insulin resistance. to learn how to reverse insulin resistance and lose weight effectively, go online to golo.com. once again, that's golo.com.

annmarie: -- anna: welcome to "bloomberg markets european open." the cash trade is less than an hour away. open to talking about talking about tapering at some point. the fed markets give the markets -- fed minutes give the markets plenty to think about. the