![\"Total](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2025\/12\/TOTAL_2025-12-02_09-50-57.png?resize=1024%2C473\")
<\/p>\n","protected":false},"excerpt":{"rendered":"Arca CIO Jeff Dorman calls the current market slide \u201cone of the strangest crypto sell-offs ever,\u201d arguing that price action is increasingly disconnected from both macro conditions and sector fundamentals.<\/p>\n
In a MSTR isn’t selling, Tether isn’t insolvent, DATs aren’t selling, NVDA isn’t blowing up, the Fed isn’t turning hawkish, the tariff wars aren’t restarting,\u201d he writes, before admitting: \u201cI still have no idea why crypto is down.\u201d<\/p>\n
In his accompanying essay \u201cThe Selling Nobody Can Explain\u201d (Dec. 1, 2025), Dorman details a market that has fallen in seven of the past eight weeks, with only a brief Thanksgiving rally before renewed selling as Japanese markets reopened. The first leg lower followed the October 10 exchange outages at Binance and others, weeks ahead of the FOMC meeting. Much of November\u2019s weakness was retrospectively ascribed to Fed Chair Jerome Powell\u2019s hawkish tone, which drove December rate-cut odds from \u201calmost a 100% chance\u201d to \u201cas low as 30%.\u201d<\/p>\n
What makes the late-November continuation unusual, he argues, is that the macro backdrop has since turned supportive again. Core PPI printed at 2.6% versus 2.7% expected, early post-shutdown labor data point to a cooling jobs market, and December cut odds have rebounded to around 90%. Equities \u201cstaged a fierce rally to close November in positive territory,\u201d and betting markets are effectively pricing in Kevin Hassett, a known policy dove, as the next Fed chair. Against that backdrop, Dorman asks, \u201cwhy are digital assets still selling off on every piece of bad news but failing to rally with good news?\u201d His answer is stark: \u201cI have no idea.\u201d<\/p>\n
One working explanation is that the marginal seller is no longer crypto-native. Dorman cites Bill Ackman\u2019s remark that his Fannie Mae and Freddie Mac positions are trading in sympathy with crypto, despite orthogonal fundamentals. The comment, he argues, reflects the growing overlap between TradFi, retail and digital-asset investors. What was \u201ca pretty isolated industry\u201d is now deeply integrated into multi-asset portfolios, and in those structures \u201cinvestments in crypto seem to be the first to go.\u201d The crypto ecosystem itself is highly transparent; by contrast, \u201cTradFi remains more of a black box. And that black box is dominating flows and activity right now.\u201d<\/p>\n
Dorman revisits Arca\u2019s framework that token value is a mix of financial, utility and social components. With sentiment at cycle lows, it is no surprise that assets whose value is mostly social \u2013 Bitcoin, L1s, NFTs, memecoins \u2013 are under pressure. The surprise is that tokens with stronger financial or utility anchors have not consistently outperformed. \u201cWhile some do (BNB), most do not (DeFi tokens, PUMP). So that’s a bit odd.\u201d Equally unusual, he says, is the absence of \u201ccavalry\u201d buyers; instead, more players are \u201cpiling into the weakness, expecting more weakness,\u201d leaning on momentum rather than fundamentals.<\/p>\n
On MicroStrategy, Dorman reiterates that the firm \u201cwill never be forced sellers,\u201d despite recurring headlines. On Tether, he pushes back against a rapid narrative shift from mega-valuation to supposed insolvency. With USDT roughly 70% backed by cash and equivalents and 30% by gold, bitcoin and loans, he argues that \u201cany questions about their liquidity are just silly,\u201d given the implausibility of 70% same-day redemptions. Solvency risks would require large losses across that 30% sleeve, which he sees as manageable given the parent company\u2019s profitability.<\/p>\n
Ultimately, Dorman reduces the puzzle to flows and market structure. \u201cThere are no buyers within the crypto walls today,\u201d he writes. Crypto-native investors are \u201cexhausted,\u201d and the Wall Street firms that are \u201ccoming\u201d into the asset class \u201caren\u2019t here today.\u201d Until crypto assets can be purchased seamlessly within existing mandates and systems at institutions like Vanguard, State Street, BNY, JPMorgan, Morgan Stanley and Goldman Sachs, \u201cthey just won’t do it.\u201d For now, he concludes, the persistent weakness \u201ccertainly has us scratching our heads.\u201d<\/p>\n
At press time, the total crypto market cap was at $2.9 trillion.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Arca CIO Jeff Dorman calls the current market slide \u201cone of the strangest crypto sell-offs ever,\u201d arguing that price action is increasingly disconnected from both macro conditions and sector fundamentals. Why The Crypto Sell-Off Is “Strange” In a MSTR isn’t selling, Tether isn’t insolvent, DATs aren’t selling, NVDA isn’t blowing up, the Fed isn’t turning…<\/p>\n","protected":false},"author":1,"featured_media":8662,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[3861,36,1207,43,434,3562,33,4140],"class_list":["post-8661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency-market-news","tag-arca","tag-crypto","tag-crypto-crash","tag-crypto-news","tag-crypto-prices","tag-crypto-sell-off","tag-cryptocurrency-market-news","tag-jeff-dorman"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/8661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=8661"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/8661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media\/8662"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=8661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=8661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=8661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}