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The recent crypto crash has left many investors questioning the way the market is going. In this episode, Jeff Dorman, chief investment officer at Arca, provides a deep dive into the factors behind the crash, the macroeconomic influences at play, and why he remains optimistic despite the downturn. Expressing surprise at Ethereum’s underperformance this year, he describes how the Democrats’ handling of crypto is an own goal, and how TradFi and DeFi differ from each other during market upheavals.
Show highlights:
- The two main reasons the markets crashed this past weekend
- How the macro environment has affected crypto lately and why the market has gotten “way ahead of itself”
- Why ETH was down so much, more than other cryptocurrencies
- The “most important” shift in crypto policy that has occurred this year
- The Japanese yen carry trade that was one of the key factors in the market meltdown
- Whether Genesis distributing $4 billion in assets had an impact on the market
- Why Jeff believes that the data we have today does not point to a recession in the U.S.
- Why Jeff says he’s “buying the dip”
- Crypto as a political issue and why he thinks Harris winning would not be as bad for crypto as many believe
- Why bitcoin doesn’t always act as a hedge against equity-related or geopolitical risk, in Jeff’s opinion
- What Jeff thinks about the proposals for the U.S. government to buy bitcoin for a strategic reserve
- The stark contrast between TradFi giants halting trading and the permissionless nature of DeFi
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EPISODE TRANSCRIPTGuest:
- Jeff Dorman, Chief Investment Officer at Arca.
- Previous appearances on Unchained:
Links
Market crash:
- Unchained:
- The Block: Cryptocurrency market capitalization registers largest daily drop since 2022
Japan
- BBC: The Bank of Japan raises interest rates for second time this year
- The Defiant: Here’s an ELI5 on on How Japan Sent Global Markets Tumbling
SEC:
- Eleanor Terret’s tweet on the SEC’s funding
- Unchained: Can Gary Gensler Be ‘Fired’ If Trump Becomes President Again?
Others:
- The Block: Genesis completes bankruptcy restructuring, begins distributing $4 billion in crypto and cash
- Poylmarket: US Presidential Elections odds