Crypto Crash | US Dollar Is The Thing To Watch Broken Pie Chart

Derek gives his thoughts on the FTX crypto collapse and bankruptcy. Why crypto are NOT currencies. Then, why everyone should be paying attention to the US Dollar. Why the US Dollar is so important for multi-national companies and their revenues. How those revenues are impacted when the dollar is strong (or weak). Then finally a check in on the Fed Funds probabilities for future rate hikes.
 
Why crypto currencies have failed to be currencies
How some crypto returns seem too good to be true
There is risk when returns are greater than the risk-free rate
Explaining how revenues for US companies are affected by value of US Dollar
Why the dollar may be the thing to watch right now
Anti-correlations between the US Dollar and stocks
US Dollar has biggest one day fall in years
How interest rates affect currency exchange rates
Deep dive into examples of revenues and earnings with strong and weak US Dollar
Microsoft stated they had a 5% negative revenue impact in Q1 from currencies
Speculation that FTX used customer funds inappropriately
 
 
Mentioned in this Episode:
 
Coin Desk article explaining FTX collapse https://www.coindesk.com/policy/2022/11/10/ftx-violated-its-own-terms-of-service-and-misused-user-funds-lawyers-say/
 
Fed Funds Rate probabilities from CME https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
 
Microsoft revenues impacted in Q1 2023 earnings report https://www.fool.com/investing/2022/10/30/microsoft-beats-back-king-dollar-and-rising-intere/
 
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
 
Contact Derek derek.moore@zegafinancial.com