This Week in Bitcoin 79: Collateral Damage
Oct 29, 2025
Recent Fed rate cuts have sparked discussions on their impacts, while the AI sector grapples with layoffs and hiring practices. The rise of Bitcoin-backed loans is highlighted, with platforms like Ledn approaching $1 billion in originations. JPMorgan's surprising move to accept Bitcoin and Ether as collateral sheds light on changing financial landscapes. CleanSpark's pivot to AI data centers raises questions about energy use and mining. The conversation also delves into multi-sig privacy improvements and Lightning Network innovations.
AI Snips
Chapters
Transcript
Episode notes
AI Layoffs Often Mask Bad Hiring
- AI layoffs are often used as a narrative cover for poor hiring during COVID rather than pure automation replacement.
- The host argues many cuts reflect business-cycle, rate, and liquidity pressures more than immediate AI capability.
Fed Shifts Toward Neutral And Stops Runoff
- The Fed cut rates 25 bps and signaled a move toward neutral while ending balance-sheet runoff in December.
- Powell emphasized weak, backward-looking employment data and warned of upside inflation risks and data gaps from the government shutdown.
Factor QT End Into Market Liquidity
- Expect liquidity to improve modestly when the Fed stops quantitative tightening and reinvests into T-bills from December 1st.
- Treat this change as a mild bullish signal for markets, but don't assume an automatic Santa rally.