Cryptocurrency On the Move

Julie Hyman, Brian Sozzi, and Myles Udland discuss the flow of cryptocurrency as Dogecoin slows and Ethereum rises.

Video Transcript

JULIE HYMAN: --open, and we got to talk about cryptocurrencies here this morning, following Elon Musk's star turn on Saturday Night Live. We'll leave the reviews of his performance aside. Well, maybe we won't. I thought he was fine. But he did, of course, as expected, talk about Dogecoin.

But, well, maybe those Dogecoiners didn't get what they bargained for, as we saw the price fall. And he basically said, it's a hustle, right, during the news update portion of it. Myles, you know, I guess this illustrates just what Dogecoin is all about, which is not much. But at the same time, we're seeing things like Ethereum go higher. So I don't know. What's our sort of Musk, SNL, Dogecoin correlation chart look like this morning?

MYLES UDLAND: Well, did you think that-- do you think that he was imitating Tom Kean with the bow tie? Because that was my thought, is that--

JULIE HYMAN: Oh.

MYLES UDLAND: --he trying to find, like, venerated financial commentator. And you kind of have two options. You could try to be Jim Cramer, which would be a jacket-- well, let's see, no jacket, tie, rolled up sleeves, bang the table, or you do the bow tie look with the glasses, which is what Elon went. And I sort of thought he was basically imitating versions of us, but no one's going to imitate any of the three of us on the air. But they might imitate Tom Kean. So maybe that was kind of my thought with that.

And I thought it was, you know, sure, it's a hustle, whatever. I think people's focus on the action in Doge during SNL, like, whatever. I mean, I'm surprised by myself, honestly, at how little interest I have in trying to get involved in the Doge conversation or the crypto conversation. But you know what? It just doesn't excite me maybe to the extent that it should, given this environment.

There we see in the real stock market, things that are not just vibes, or whatever we want to call them, on the floor of the New York Stock Exchange, Coke Euro PAC Partners, CCET. Of course, there are multiple Coke-related tickers out there, KO, the main ones, CCET ringing the bell down on the floor of the New York Stock Exchange. But let's stay on the important news, Julie. Talk a bit more about SNL.

JULIE HYMAN: Well, all I was going to say is what's interesting here is that we're starting to see more differentiation among the cryptocurrencies. That perhaps is an interesting takeaway. I mean, the action in Dogecoin is pretty parallel to what we saw with the so-called Doge Day, right, on 4/20, where there was a lot of talk about it going up to the day, and then it fell on the day itself. You know, classic sort of buy the rumor, sell the news or whatever version of that trope you want to use. And we see Ethereum going up today.

There don't seem to be a lot of catalysts, usually, for this stuff. But it does show the different flows and the ins and outs of the different cryptocurrencies. I don't know exactly what's driving what, but we do see the breakdown in correlation between them for what it's worth.

BRIAN SOZZI: And for what it's worth, Myles, if I was going on SNL this coming weekend, I would imitate you. No doubt about it, baby.

MYLES UDLAND: I mean, look, there's plenty there. It's just that everyone's going to be like, no one knows who that guy is. So it can't be-- like, you have to imitate a famous person. And I think Tom is probably famous enough, although, look, I mean, we all know the crossover between the Bloomberg surveillance audience and SNL watchers probably pretty limited.

JULIE HYMAN: Yeah, I don't know. I wonder kind of what the boomer audience of SNL is at this point in time. And PS, I would love to see Brian Sozzi's Myles Udland impression. Perhaps at our afternoon meeting, you can give us a little preview. All right, we are going to move it on to commodities here, because as we talked about at the top of the show, we're definitely seeing commodities movement.

And it's really across commodities, right? Whether you're talking about metals or energy or agriculture, all of that is going up. We're watching copper prices hit new highs. We talked about the spike in gasoline, although that was event-driven. And most of what we're seeing in commodities is supply, demand-driven much more broadly, right?

I was telling you guys in this morning's meeting, you know, more and more, we are seeing the real world consequences of this, whether it's Tyson talking about feed costs going up or, you know, the-- my livestock farmer, who I talked to at the farmer's market, talking about lumber prices going up for his barns and feed prices skyrocketing, as I noticed his prices going up. I mean, this stuff is making its way through the system.

BRIAN SOZZI: Yeah, and--

MYLES UDLAND: Yeah, I mean, look--

BRIAN SOZZI: --it's amazing, Julie, that the market can absolutely care less. I mean, you have the Dow out of the gate here up on 170 points. You have that deep freeze in Texas a couple of months ago. The stock market still goes up here. To me, if this was a couple of years ago, I would have thought, well, maybe the market is down a couple hundred points here on the Dow in the early going. And it's not. And, Myles, I think we're continuing to watch the power of the Federal Reserve, their ability to put a lot of money into the system and essentially make any dips in the markets essentially viable.

MYLES UDLAND: Yeah, and look, I think we continue-- I mean, this story for 2021 is starting to come into focus, right? I mean, we don't-- I mean, it's the economic version of the medical supply story that hit in 2020. Last year, we didn't have enough PPE. We didn't have enough ventilators. We didn't have enough medical staff to take care of all the COVID patients. And now, we don't have enough workers. We don't have enough stuff, so it's commodities, inputs, whatever it might be, to provide for all the demand that is coming in from consumers.

And you can go almost infinite different directions with how that economic pressure is playing out. But it has been quite a long time since we have seen just this many real resource constraints on the economy, hitting all at once. And how it plays out, I don't think any of us really know. We all have sort of our ideas of where this goes. But it is certainly the most unique economic environment that we have seen, at least so far as I can recall.

JULIE HYMAN: And yet, it's not having that much of a depressive effect on stocks as--