Crypto Crash | US Dollar Is The Thing To Watch

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 [email protected]