Caroline Hyde

Let's talk about the crypto markets because they too are recovering today after a heavy sell-off yesterday when Bitcoin slid as much as 8%.

Let's take a look at strategy as well.

The artist formerly known as MicroStrategy, heavy investor in Bitcoin, gaining some support after scrambling to calm its own investors, creating a $1.4 billion reserve to fund dividend and interest payments rather than

than having to potentially sell Bitcoin as a last resort.

Bloomberg Senior Digital Finance Editor Anna Herrera is joining us once more from London.

Anna, why today the dip buying?

It's hard to know with crypto, as I'm sure you're aware of.

And it's crazy to think that yesterday we were down 8% and thinking of all the macro condition that might have been leading to that drop.

So, you know, we were speaking to traders today and investors, and it seemed that although the price is up, the sentiment is still a bit cautious.

And volumes aren't as up as they were before.

I think people are sort of assessing crypto in reality has been on a downward spiral a bit since October 12th, the 11th when the price crashed.

And so while today we're a bit up in reality, you know, we're still pretty, pretty lower than we were around a month ago when Bitcoin reached its record highs.

I mean, negative Bitcoin funding rates, still an anxiety, extreme fear levels with CoinMarketCap's fear and greed index.

There's still a lot of comfort needed to an investor base that's been beaten up, particularly the retail trade, who have tried to gain exposure, not just by owning crypto, but by owning crypto-related assets, such as what leverage bets on microstrategy, now called strategy.

And talk to us about how much retail have hurt here, as well as institutional.

Yes, obviously, we know that retail investors are trying to get exposure into Bitcoin and crypto through buying ETFs that were exposed to strategy or strategy stock itself.

And that's fallen dramatically over the past year.

And so, you know, they've been hurting.

But at the same time, we've been trying to wait to see if more institutional buyers will come in and offset that.

But it seems to be, from what we're hearing, a sort of wait and see mode, partly waiting until the Fed decision next week.