>> from the heart of where innovation, money, and power collide in silicon valley and beyond. this is "bloomberg technology" with emily chang. emily: i'm emily chang and this is "bloomberg technology." bitcoin hovers around $32,000, much where it started this tuesday after dipping below 28. why is this happening and how

low can this go? plus, free ride. i will talk to fcc commissioner carr who says big tech has been piggybacking on infrastructure for too long. and, the vc view on diversity. silicon valley is not doing nearly enough to support diversity. but we will speak to the investor leading the charge. we look into all of that any moment. first, for just a blip in time, bitcoin turned positive after tumbling below $30,000 and erasing all of the gains it made for the year. now down nearly 50% from its mid april high of $65,000. ed ludlow is here with more. ed: you also had fed chair jay powell talking to lawmakers. that helped boost u.s. equities,

rising hybrid the nasdaq come a tech heavy index. microsoft hit a market cap of $2 trillion for the first time. bitcoin is where the action was. at one point, followed by as much as 12%. now, we are up near 32, $33,000. that also had an impact of course on the crypto index. other coins falling away including ethereum. in the equity markets, there were some stock stories. one of the laggards among big tech was google. a lot of antitrust scrutiny. gamestop surgeon after a stock sale. 's blanche surgeon after he private equity investment. peloton making gains after offering a new armband wearable. let's go back to cryptocurrency. it is not all about bitcoin.

ethereum has done remarkably well, been more resistant. litecoin also making moves tuesday. emily: we are going to talk about this a lot more. bloomberg caught up with the ceo of one of the world's largest crypto exchanges at the qatar economic forum. he talked about bitcoin's big drop. >> we don't know what is causing it. there is a lot of news going on right now, positive and negative. from our perspective, we just see people placing orders. if we come back to like a year ago, the markets are still 10x bigger, 10x more active, etc. we think they are still healthy markets. emily: i want to bring in the chief market strategist at miller taebaek, and valkyrie. i want to start with you. it seems like the ceo of binance

had no idea why this is happening. why did it get so low today, then bounce back, and where does it go next? >> part of this move. again, i am a long-term bull. but the big rally we saw initially from march until may of this year -- sorry, march of last year until may of this year, has been pushed by excess liquidity from the federal reserve. yes, it would have gone up on its own but i question how much more it has gone in terms of this excess liquidity. how much the fed starts to talk about tapering in a more serious way. the rest of the fed is laying the groundwork for a taper this year.

these cryptocurrencies are going to change the world but we have to remember that amazon changed the world, too. it got out a little bit ahead of itself in 1999-2000, came down in a big way, and was able to rally back. that is what we are seeing now in bitcoin and other cryptocurrencies. which means we will see more weakness before we get a chance for the longer-term bulls. emily: we are seeing an impact of china, the crackdown on mining, the crackdown on crypto transactions. is it a good thing that the center of gravity could to other countries for mining or not? >> i do think it is a good thing in the long-term. it is very dangerous to not have decentralization in a currency that is based.

the worries stemming from the dual threat out of china, the mining ban command also cracking down on crypto transactions. i think it is broader than that. many investors are concerned about how this will affect demand, volume, cash rates more. we are seeing a lot of selling due to that uncertainty. what we are also seeing, mining raids are now being relocated to the united states. the question, how will that affect price when they get turned back online? i think that will be a very positive position. emily: that, if you think it can go lower, how low can it go and when? >> today, we saw a real big pickup in volume. tesla has been such a big, important driver for the cryptocurrencies. when you get that kind of

washout move, the impetus to say, all of the sellers are done , we will see a nice rally. a similar move on may 19. to answer your question more directly, if we do indeed roll back over, i am looking at the 27,250 level. right around the 27 level. that would be a 68% retracement. these fibonacci retracement levels. 68% retracement from the rally from march of 2020 to the highs just recently. that would be i think a great opportunity. we would probably get that washout move on a technical basis. that sentiment moved to the bearish side of the table. when that happens, there is nobody left to sell. that is the level i am thinking for people to watch. i do need to point out, watch that 200 day moving average on

bitcoin. it has rallied up to that level twice and it has provided incredibly tough resistance. i guess my point is, if you see a rally above that 200 day moving average, don't wait for a decline anymore. it is going to go to 50000 and a lot higher. those are the levels i am watching. 27 on the downside, 4200 on the upside. emily: leah, are you telling your clients to get in now or diversify crypto assets to get into ethereum, as well as what is the direction? leah: i think that is a great question. to address my other panelist, i don't disagree. the technicals and fundamentals are a little difficult to discern. i know that may sound like a copout.

on the one hand, technicals looking scary and bearish. you are looking at some technicals that actually do look fairly good. from our research, we are a little bit lower. support is around the $25,000 level because historically that is where corporations and institutions were stockpiling bitcoin. your greater question, it is interesting but a lot the investors are long-term hodlers, if you will. we have trust, for example. i would actually say that we are seeing inflows during this downturn which has actually been quite interesting for us. obviously, a happy move. i would say there are a lot of investors out there. what i was told from a partner

today, microstrategy now owns one in every 200 bitcoin that will ever be minted. i think that the importance of, one, going back to your original question, centralization and liquidity providers generally in the ecosystem is necessary. but i think you have different types of buyers at these levels, at 40,000, 50,000, 60,000. we are seeing a lot of inflows right now of value investors. emily: we are going to have to continue this conversation another time. we could talk about this for hours but we have to get away quick commercial break. matt maley, leah wald, thank you for joining us. coming up, we will hear about the rise of with alphabet ceo.

her view from the qatar economic forum powered by bloomberg's next. this is bloomberg. ♪

emily: alphabet ceo ruth porat says the company is excited about its investment and opportunity in google cloud. she sat down with erik schatzker to talk about how the pandemic has massively accelerated digitization that will endure for the long-term. ruth: there has been a dramatic acceleration in the digital transformation, trends that were playing out ovary number of

years have really been telescoped in. you can see it in content, entertainment, education. telehealth. even the way we are having this conference today. we don't see the clock turn back. we see that these trends will continue to endure. i to get his import for each one of us to consider how we can embrace digital tools and knology to support revenue opportunities and efficiency in our own business. when we look at small, medium businesses, which are the backbone of the economy, what we saw in the pandemic is one in three small businesses say they would not have survived if they did not have digital skills. it enabled them to immediately pivot, to get them the information they needed to talk about delivery, changed hours. these digital skills are imperative for survival. erik: this race to deepen

relationships with customers and consumers is a fiercely competitive one. what is google doing strategically or tactically perhaps that is different from what your competitors, the microsofts, amazons, facebook's are doing that will ultimately play to your advantage. ruth: one of the main things we are focused on is how we can stay useful to our customers to allow them to be successful as the world continues to accelerate in this digital transformation. our ability to leverage digital ai has been successful for users. how customers do not even appreciate how often they are using ai every day. for those of you traveling around the world, when you look at natural language translation, that benefits from ai.

when you look at, how can i find a store near me. on the enterprise side, what are excited about is the opportunity in our cloud business. our cloud business is benefiting from data analytics, the ai behind that. we brought in talent for industry-specific solutions. in financial services, one of the key pain points was manual uncertainty around risk analytics. we can leverage things like know your customer or anti-money laundering. we go to customers and say, this how we can help with revenue upside or efficiency. same across retailers. they are looking at, how can we ensure that we have the best supply chain management? again, the benefit of ai?

the other element, how can we be most supportive to the communities which we operate? ensuring that we are working around the globe to provide digital skills training so everyone can better submit -- everyone can participate. emily: ruth porat, the ceo of alphabet. coming up, should big tech pay up for demands it is placing on american internet infrastructure, or should that cost fall the consumers? fcc commissioner brent garces the free ride -- brendan carr says the free ride needs to end. he will join us next. raymond james has raised its target for the chipmaker, citing that the best positions for long-term growth. meanwhile, the company is pushing a chip just for crypto minors, a group that has in the

past snapped up higher performing chips aimed for the game space. this is bloomberg. ♪

emily: it is like taxing horseshoes to build a highway. that is however -- how fcc commissioner brendan carr currently describes the fund that taxes american phone bills to not only fund the cell phone network that also broadband. commissioner carr says the current model relies on an ever shrinking base of revenue from traditional phone lines to fund an increasing broadband. and that free tech is getting a -- that big tech is getting a free ride. earlier this month, i spoke with the fcc acting chairwoman jessica rosenworcel. ms. rosenworcel: it is an

intriguing idea and we will need ideas because it was set up by a law from 1996 when i had a palm pilot and aol account. it is ok to look at fresh ideas. i appreciate that my colleague is coming up with his own. in the end, those choices will be made by congress and i hope we can have a good discussion about it. emily: i want to bring in fcc commissioner brendan carr. a very diplomatic response from the acting chairwoman. what do you make of what she said and one half your other colleagues had to say about your plan? mr. carr i have been really surprised by the bipartisan support we have seen. the active chair, some of my colleagues have spoken about it, lawmakers across the political aisle have given favorable responses. most consumers do not know that

right now, they pay this 40% fee right on the bill for service. whether it is wired or wireless. it has recently been in a death spiral, over 30% now, this fee or charge ending up on consumers' monthly bill. putting tech to the task of paying their fair share for internet infrastructure that they benefit from to the two enough billions of dollars. -- to the tune of billions of dollars. emily: they are getting a lot of these internet services for free. for example, they use facebook for free. how much tax should consumers pay compared big tech companies? mr. carr: right now, it is 100% borne by consumers. i think we should flip that around and the lion's share

should be paid by those who benefit. we need to make this fundamental shift going forward. the reality is this is consistent with past precedent. historically, communications networks in this country were paid for in the main by the businesses that benefit. used to be long-distance numbers, fax lines, they paid the majority, that drove down the cost for consumers. we have failed to update our approach so these new businesses are paying a fair share toward these new networks. emily: what is the response you have gotten so far from big tech? mr. carr: big tech has not given a bear hug to this idea. the trade association saying we should not punish these companies. honestly, i do not view this as a punishment to live up to these measures.

you look at this covid-19 pandemic, a black swan event, regulators asked netflix and other streaming providers to degrade the quality of their service because they were giving up -- they were taking up so much bandwidth. we did not have to do that in the u.s. but one reason why our networks performed is that we have a high level of investment. the funding mechanism, the universal service but we relied on to fund it, is now antiquated and cannot support the weight of the investment that we need. not just from the infrastructure side but also supporting income -- supporting infrastructure for low income americans. emily: spacex has gotten permission from the fcc for lower orbit of its starling satellites, saying this would improve speed and performance, despite opposition from amazon which of course has its own

satellites but which has yet to launch any of them what is the significance? what does this actually mean? mr. carr: we are used to competitors or potential competitors coming to the fcc with requests. star link is one that we are optimistic about. when you look at the cost of covering that last 1%, 2% of the country that will be the hardest to serve with traditional, terrestrial based services, starling or amazon and get this done for pennies on the dollar than competing technologies. hopefully, our relief that we provided recently to spacex alps them to continue to accelerate their builds. emily: what do you expect to see from amazon? will that be a significant contribution to closing that gap that you mentioned? mr. carr: it is not going to be

a solution for every part of the country today. but that costliest 2%, 3% of the country, i think that is where we can make significant progress. the billions of dollars it would cost to bring terrestrial service, we can potentially use low-earth orbit satellites. i hope they do succeed in this space. emily: one last question, the $2.3 trillion infrastructure bill includes $100 billion to invest in digital river structure. how do you want that to be spent? mr. carr: it has to be untapped areas. there are some proposals right now that would spend billions of dollars upgrading areas that already have high-speed service to make sure they have future proof networks, so to speak. i think we need to get the truly unserved up to speed now. emily: fcc commissioner brendan carr, thank you for stopping by. coming up, following the

bouncing bitcoin. the cryptocurrency going on a wild ride, falling below $30,000, then recovering. this is bloomberg. ♪ (announcer) back pain hurts,

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>> i look at bitcoin, in particular, as digital gold. it has the same macro tailwinds, but it is also very early in the adoption. it has moved into the space, hedge funds are ok with it. real money managers are ok with it. insurance companies ok with it. you're playing an adoption game and a macro game. emily: galaxy digital ceo mike

nova gratz who is convinced that bitcoin is better than gold. the top story today, crypto chaos. and, you have been talking -- tracking a number of different verticals. >> bitcoin takes all of the headlines what about our theory of? the second largest cryptocurrency by market cap. this table tells the story. it's performance is so good, as of may 31 admit a 40% of the index. come with me to my bloomberg terminal, look at this chart -- the last 12 months, it is incredible for our theory and. between june 22 and may 11, and rose thousands of percent. we are down 60% off the high. it is still vastly outperforming other cryptocurrencies including bitcoin. hovering around.

when bitcoin comes back, so that our theory and. this school inside dogecoin as well. what happens, what about dogecoin? it was created as a joke and it has outperformed bitcoin. the question for your guests, one and looking at? they at fundamentals? or are they going with the flow. that is an astonishing chart. emily: come on, and. thank you. love it. ed ludlow, thank you so much for the context. kristin, which would be talking about, or theory of instead of

bitcoin? >> both very strong. we're still very bullish on bitcoin. we have seen a lot of volatility would be going over the past couple of weeks. 29 or a little bit below, then back up, continuing to hit the range. i think there is to fundamentally things happening in the bitcoin market that we have to take note of. what is china. there continues to be sentiment in china about how bitcoin should be outlawed. and, we have seen the rate decrease related to the chinese activities. senate continues in the united states to be questionable. people are weary, we have elon musk come out and say the carbon footprint is negative. i am not really sure i'd is

bullish, given the indicators we are seeing on bitcoin. emily: what is this going to see? we had guest earlier in the show saying it will go lower before goes higher. they are bullish over the longer term. you see it going lower? how low, how low will it take? >> it is interesting, china's activity right now is not about the carbon footprint. it is about introducing its own cryptocurrency that already has. it is coming up on the 100th anniversary in july.

once that happens and people start to look at the fundamentals of bitcoin, we are going to see a rally again. what i thought was particularly interesting going on in china, their concern of the carbon footprint. we are talking about the authoritarian regime of bitcoin. if you look at what is happening with bitcoin, fundamentals still continue to look good. you see more companies adopting bitcoin. the chart about the number of wallets that are happening internationally continues to rise. we continue to see institutional adoption of bitcoin in unprecedented amounts. we mentioned money markets,

seeing ra's, insurance companies, everybody is very interested in this asset class. our theory of rolling out at the end of the year. in all cryptocurrencies, the activity continues to be strong. these types of developments, investors continue to be bullish in his face. emily: we still have dogecoin, as i mentioned, what is your theory on it? >> is an interesting coin. on the exchange platform, there is clearly consumer sentiment. elon musk's narrative has it potentially being the crypto for the masses.

mars might need a cryptocurrency. i'm not sure about that. what is happening with mean coins in general, flipping that narrative on its head from being a joke to something that people can hold and use, is quite interesting. emily: i want to talk about the infrastructure. that is where you're building your product. i'm still serious of the shift in gravity, will see the united states. how does it impact the industry over the long term? >> that is a great question. i believe there is strong sentiment in the united states for environmentally friendly bitcoin. once we move away from the carbon footprint out of china and we look at the renewable options for bitcoin, whether

that is north america or south america, el salvador, also possibilities there. that may be extremely positive for bitcoin. emily: so, what will happen tomorrow, i guess. who knows? what do you think? >> we are in such an interesting space this year. i think particularly we just published a report in conjunction with twc, elwood and tema. in we participated in that. in that report, it was talking about hedge funds adoption of cryptocurrencies. what we are seeing, there are two primary reasons traditional asset managers and head funds are not becoming engaged. one is the lack of information. the second is the lack of

regulatory insight into this asset class. you're seeing in congress, people are talking about what should we be doing. what does that regulatory framework look like? maybe not tomorrow but i think this year and next year, you are going to see guardrails, and discussions about what cryptocurrency should look like over the next one to five years. emily: we are waiting for that regulatory steer from the u.s. government. thank you so much for sharing our insights, appreciate it. now to a bloomberg scoop. peloton is working on a digital hop rate -- digital heart rate armband. this is the biggest move to span -- to expand beyond fitness equipment into wearables. it is expected to pair with pellets on bikes and treadmills, shares jumped on the news,

finishing the day up 8%. and, it seems like shoppers are looking for some very different bargains from this year's amazon prime day. according to the research company, consumers are flocking to the site to -- to buy diapers. the first 32 hours of the tube event, the average order in the u.s. was about $47. during the pandemic, shoppers shifted more of their spending online. making it more difficult for events like prime day to stand out. coming up -- a new radical move to diversify venture capital and create a new generation of black founder to could change the world. let's talk to the investor behind it, next. this is bloomberg. ♪

emily: amazon's takeover of mgm is said to be reviewed by the trade commission. it will oversee the deal instead of the justice department. they .4 5 billion-dollar deal will pose a test for the agenda, of the sec. there is a new way for gender capitalist to cultivate a more diverse generational founders.

joining me for more on this topic, very givens, the managing partner at colette capital, very, thank you so much for joining us. let's talk about your strategy here. your mission, and where you're going to put this money to work. >> thanks for having me. excited about what we are doing here. focus being on getting black innovative founders. funding, 10 years ago when i became a founder. the way they were doing is a tad bit different. the main thing we are doing different is increasing the chances of success for founders. by changing the definition. it just doesn't work, especially for communities of color where you need to expand what it means to be successful. we created a new investment

vehicle that allows us to not only chase after the unicorns but also have companies that are running at 10, 15, $20 million. and still have the benefits of venture capital. basically, we are bringing together, making sure founders and funders have the same mindset and are on equal playing field. emily: i think how different the world might be of more black founders, more women had gotten a chance to start the next google, facebook, apple or amazon. how different the world might be . would you think the answers that question is? if we give these folks opportunities now, how does the world look different? >> the world is completely different. when you talk about the

trickle-down, of what looks like when somebody in your community is successful, the downstream positivity that comes from that is immense. you'll have to look any further than my partner that sold her company to amazon with three black founders. between those three, they all went back and gave back to their community. they invested in 10 other black founders. back to kansas city, did a lot of work for black founders in kansas city. they are building a tech hope in her hometown. the trickle-down, and what that is going to mean for the black community in their respective cities is going to be an immensely positive effect. what we're trying to do is do that 100 more times. 1000 more times. and with the world looks like

for the black community, we look up at 20 years and we have more angel investors writing checks. more children getting the technology, all these positive things that come from the downstream. emily: you're up against traditional vc firms raising billion dollar funds. are these traditional funds doing enough? and, $50 million is great, it's not a billion dollars. is that enough to change the equation? the change how business is done, and how new technology is created. >> no, 50 million is not enough. but it is enough to prove there are other options out there. and, to hopefully allow other vcs to see us as an opportunity for them to stop leaving communities of color, specifically the black

community, out of the fundraising community. hoping that we can be the beacon, the shining life, the example. it is not just that there are a lot of other funds doing it. hopefully, we will see a change in this industry. but, we won't know probably for another 10 years. making sure we are planting the right seeds. emily: tell me a little bit about your lps. your investors. are they more angel investors? i want to know more about the people behind you who are interested in putting money to work this way. >> we have a plethora of types in our fund. raising from corporations like google and amazon. google, apple, goldman sachs, bank of america.

coughlin, all the way down, it is important to me. that we also have our peers. black founders, i just had a brain far here. other black founders that have actually joined us in the fund while they are building their company. that's the change you want to see down the line. so these founders we are investing in become investors in the church. we started that today by allowing our funds to be more accessible to black investors as well. emily: as long as you keep talking, it is all good. thank you. very givens, collapse capital managing partner. we will be watching how you put this my door. meantime, breaking news, that morgan stanley has decided to

prevent on vaccinated people from entering their new york office. this is according to a report from the financial times. setting an internal memo that it has seen. clients and visitors will be required to be fully vaccinated in order to get into the office. that is a fairly dramatic stake in the ground by morgan stanley. coming up, you two taking on -- youtube taking on tiktok by rolling out a short form video feature. it has set aside $100 million to pay creators. that story, next. as we hit the break, voters in new york city's mayoral race testing a new ballot system. the winner will not be cleared for weeks, but -- clear for weeks, but it is a crowded field , the city's most diverse ever that could produce the city's

first woman or asian mayor. one of the key issues, wiping out crime, education and a pandemic economic recovery. tech on the mind as there are more than one million tech jobs. this is bloomberg.

♪ emily: microsoft joined apple in the exclusive to trillion dollar club today. briefly. closing the day just shy of that mark. they are off 19%, outperforming apple and amazon. microsoft has been buoyed by the best that its dominance in enterprise software will can and you and was pandemic world. meantime, youtube is taking on tiktok.

the company's short feature winning over creators as it plans to begin paying contributors. and, not the traditional advertising model. his shorts really working? is it a major threat to tiktok? >> from what we have seen it has been a good success. as far as a threat to tiktok, tiktok is still growing. they are competing for the same viewers in creators. it will be interesting of the summer when you to plan for start paying out from its fun. they will have a lot more money to throw around. facebook put out its own tictac copy cat, now youtube is doing that too. emily: we did a whole series on tiktok.

in a popular creator, armor her saying specifically tiktok was not necessarily super helpful as a company. the platform is there to use. other companies like instagram have been more helpful in offering support to creators directly. >> has been around, there is business chairing money with youtubers. if the leader in this market, this creator economy. the downside of that, and so massive, and it's hard for people to break out area the shorts are giving away, if you are a two tutorial, make is huge. it is hard to break free area who knows how long it is going to last. a lot of creators point out that there is a constant great with youtuber matter what. historically it has been the one

place we can really earn a living. emily: how does this fit into youtube's broader business strategy? >> youtube is becoming far more critical for google. advertising strategy, business, a big focus on commerce area you talk to some creators thinking about using commerce, tiktok is getting into commerce two. being willing to sell somebody, the products are good. who knows, clearly the short form video is popular. the zeitgeist right now. they integrate that with the commerce. i think that will go a long way. emily: popular among folks decades younger than we are. [laughter] thank you so much. for bringing us that story. that does it for this edition of uber technology. make sure you join us tomorrow.

we will be joined by the founder and ceo of the real real candidacy l of sub stack. i'm emily chang in san francisco. this is bloomberg. ♪

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haidi: a good morning, welcome to daybreak austria. sophie: we are counting down to ages major markets opens. shery: the top stories this hour -- u.s. stocks climb after jay powell reiterates his stance on inflation being transitory. alice is the jump in prices is tied to economic reop