Crypto Prices Are Way Down. Is It Time to Buy the Dip? - Ep. 684

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:

00:00 Intro

01:38 The two main reasons the markets crashed this past weekend

05:29 How the macro environment has affected crypto lately and why the market has gotten “way ahead of itself”

12:44 Why ETH was down so much, more than other cryptocurrencies

16:52 The “most important” shift in crypto policy that has occurred this year

21:19 The Japanese yen carry trade that was one of the key factors in the market meltdown

30:20 Whether Genesis distributing $4 billion in assets had an impact on the market

33:39 Why Jeff believes that the data we have today does not point to a recession in the U.S.

36:49 Why Jeff says he’s "buying the dip”

40:47 Crypto as a political issue and why he thinks Harris winning would not be as bad for crypto as many believe

48:19 Why bitcoin doesn’t always act as a hedge against equity-related or geopolitical risk, in Jeff’s opinion

52:56 What Jeff thinks about the proposals for the U.S. government to buy bitcoin for a strategic reserve

54:15 The stark contrast between TradFi giants halting trading and the permissionless nature of DeFi


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Guest:


Jeff Dorman, Chief Investment Officer at Arca.

Previous appearances on Unchained:

How Elon Musk Pushed DOGE Up and BTC Down, With Arca's Jeff Dorman

3 Things SushiSwap Needs to Get in Order, According to Arca

Links
Market crash:

Unchained: 

Ethereum Drops Below $2,300 Amid Jump Crypto Rumors

Bitcoin ETF Trading Volume Surges to $4.7 Billion Amidst Market Selloff

Bitcoin and Ethereum Funds Record $546 Million in Weekly Outflows: CoinShares

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


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