Arca Chief Investment Officer: This is the strangest round of sell-offs in history, with original investors exhausted and new funds unable to enter the market

Arca's Chief Investment Officer Jeff Dorman published an article this morning calling this round of decline "the strangest cryptocurrency sell-off in history." The market clearly has many positive factors ------ the Federal Reserve's interest rate cuts, the impending end of quantitative tightening, strong consumer spending, record corporate earnings, and sustained demand for artificial intelligence, among others; meanwhile, all the so-called reasons for the cryptocurrency sell-off are unfounded ------ MSTR has not sold off, Tether is not insolvent, DAT has not reduced its holdings, Nvidia has not faced a crisis, the Federal Reserve has not turned hawkish, and the trade war has not restarted.

Jeff stated: "I still don't understand why cryptocurrencies keep falling. The reason may be simple: despite advancements in technology and positive developments in Washington's policies and Wall Street's movements, they cannot change the fact that there is a lack of buying pressure within the current cryptocurrency ecosystem. Native crypto investors are exhausted, and new funds have not entered the market. Although investors are forward-looking, they will not easily change their investment processes ------ therefore, even though institutions like Vanguard, State Street, BNY Mellon, JPMorgan, Morgan Stanley, and Goldman Sachs are about to enter the market, they are not yet in position today. The influx of funds will not truly arrive until these institutions can easily allocate crypto assets through the existing authorization systems and investment processes."