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Arca CIO: This is the most bizarre sell-off in history; native investors are exhausted, and new capital has yet to enter the market

Arca CIO: This is the most bizarre sell-off in history; native investors are exhausted, and new capital has yet to enter the market

ChaincatcherChaincatcher2025/12/02 02:48
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ChainCatcher reports, Arca Chief Investment Officer Jeff Dorman described this round of plummeting prices as "the strangest crypto sell-off in history" in a post this morning. The market clearly has many positive factors — the Federal Reserve is about to cut interest rates, quantitative tightening is coming to an end, consumer spending is strong, corporate profits are at record highs, and demand for artificial intelligence remains robust. Meanwhile, the stock, credit, and gold and silver markets are hitting new historical highs every month. At the same time, all the so-called reasons for the crypto sell-off do not hold up — MSTR has not sold, Tether is not insolvent, DAT has not reduced holdings, Nvidia has not crashed, the Fed has not turned hawkish, and the tariff war has not restarted.

Jeff stated: "I still don't understand why crypto keeps falling. The reason may be simple: despite technological progress and positive developments in Washington policy and on Wall Street, none of this can change the current fact that there is a lack of buying within the crypto ecosystem. Native crypto investors are exhausted, and new capital has not entered the market. Although investors are forward-looking, they do not easily change their investment processes — so even though Vanguard, State Street, BNY Mellon, JPMorgan, Morgan Stanley, Goldman Sachs, and other institutions are about to enter, they are not in place today. Until these institutions can conveniently allocate crypto assets through existing authorization systems and investment processes, the flood of capital will not truly arrive."

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