UNCHAINED: Crypto Prices Are Way Down. Is It Time to Buy the Dip?

Aug 7, 2024

Jeff Dorman, chief investment officer at Arca, dives into the recent crypto crash and its surprising causes. He discusses Ethereum's steep decline and the macroeconomic influences that fueled market volatility. Dorman explains the impact of the Bank of Japan's interest rate hikes and how crypto policy shifts have shaped investor sentiment. Despite the downturn, he advocates for buying the dip, believing that the current data indicates resilience, and shares insights on the future of crypto amid evolving political landscapes.

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Episode notes

Intro

00:00 • 2min

Analyzing the Crypto Market Crash and Its Causes

01:40 • 5min

Market Dynamics: Jobs Reports and Crypto Fluctuations

06:43 • 15min

Understanding the Yen Carry Trade

21:36 • 8min

Market Trends and Asset Distribution Impact

29:31 • 5min

Navigating Economic Trends and Crypto Opportunities

34:53 • 24min

Jeff Dorman from Arca breaks down the recent crypto crash, its causes, and whether buying the dip is a smart move.

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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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

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