Latest news with #JeffDorman
Yahoo
05-03-2025
- Business
- Yahoo
Crypto ‘Alt Season' May Disappear for Good in Marketwide Slump
(Bloomberg) -- One of the more dependable trading patterns in crypto appears to have become less reliable during the swift drawdown from the all-time highs reached amid the exuberance around the re-election of Donald Trump. How Upzoning in Cambridge Broke the YIMBY Mold Remembering the Landscape Architect Who Embraced the City NYC's Finances Are Sinking With Gauge Falling to 11-Year Low US Tent Facility is Holding Migrant Families Longer Than Recommended Republican Mayor Braces for Tariffs: 'We Didn't Budget for This' In the past, smaller, lesser-known tokens that were commonly referred to as altcoins tended to outperform market leader Bitcoin toward the end of crypto rallies as speculators sought to profit from their higher volatility, in what traders called 'alt season.' That's changed this cycle, with cryptocurrencies like Solana and Dogecoin more closely mirroring the moves in Bitcoin, which still accounts for around 60% of the value of the estimated $2.7 trillion crypto market. 'We used the term when the digital assets industry was just getting started,' said Jeff Dorman, chief investment officer at Arca. 'Alt season happened once or twice in the past, but that doesn't mean that it will continue to be an event.' During the 2021 bull market, Bitcoin rallied, and then a slew of alt coins followed suit as a second wave. This time, Bitcoin and the other coins have been moving in tandem, and crashed at the same time. Bitcoin is down as much as 28% since its peak in January. Solana and Dogecoin, which are more volatile, are down more than 50% from their recent highs. That's even with the short-lived crypto rally over the weekend, when Trump said in a posting on his Truth Social platform that his January executive order on crypto 'directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA.' After surging 23% on Sunday on the announcement, Solana had erased all the gains by early Tuesday. Bitcoin slumped around 2% to $83,634 as of 12:09 p.m. in New York. Solana was 2% lower, while Dogecoin slipped 1.2%. XRP and Cardano were both little changed. Traders are concerned about macro economic trends, involving tariffs that kicked off this week and inflation. Recent scandals including the Libra memecoin and the massive hack of the Bybit crypto exchange have added to the uneasiness. 'Right now, this is more typical to what we saw in 2018, 2019, 2020, when the entire market would move together,' Sadie Raney, chief executive officer of EVE Wealth, a yet-to-be launched platform for female digital-asset investors, said in an interview. 'It used to be, you only needed to watch Bitcoin price, because everything moved together. What we are seeing right now is just a broader overall sentiment shift, where people are a little bit concerned about all aspects of the market.' The launch of Bitcoin exchange-traded funds in the US a year ago created a gulf between the world's biggest digital currency and other tokens, said Cosmo Jiang, a general partner at Pantera Capital. Most other coins remained unaccessible through brokerage accounts, 'and the more that happens, the more it builds on itself, because these are momentum assets,' he said. Bitcoin ETFs were hit by a record $3.3 billion in outflows last month. Even so, the Securities and Exchange Commission is expected to approve ETFs for a slew of other cryptocurrencies later this year, making these coins more accessible to casual traders. But just as with Ether ETFs that were approved mid-last year, demand risks falling short of expectations for the funds. And that may suggest that the notion of 'alt season' could be gone for good. Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? The Mysterious Billionaire Behind the World's Most Popular Vapes Snack Makers Are Removing Fake Colors From Processed Foods Trump's SALT Tax Promise Hinges on an Obscure Loophole The US Is Withdrawing From Global Health at a Dangerous Time ©2025 Bloomberg L.P. Sign in to access your portfolio
Express Tribune
25-02-2025
- Business
- Express Tribune
Crypto market tumbles as bitcoin drops 6%, ether plunges 11% to lows
Listen to article The cryptocurrency market tumbled on with Bitcoin and Ether hitting multi-month lows, as a broader cross-market sell-off and concerns over last week's $1.5 billion Bybit hack continued to weigh on investor sentiment. Bitcoin and Ether slide to multi-month lows Bitcoin, the world's largest cryptocurrency by market value, dropped as much as 6%, falling to $88,245, its lowest level since November and the first time it has slipped below $90,000 since mid-January. Ether, the second-largest cryptocurrency, saw an even sharper decline, plunging as much as 11% to $2,333, marking its lowest price since October. Altcoins struggle as weak sentiment and scandals mount Alongside Bitcoin and Ether, major altcoins such as Solana and Dogecoin also faced heavy losses. Solana dropped 15%, while Dogecoin declined 13%, reflecting a broader risk-off sentiment in the digital asset market. "Crypto is just weak and has been for eight weeks," said Jeff Dorman, Chief Investment Officer at Arca. "Equities, fixed income, and gold have shrugged off negative data, but only crypto keeps falling. Poor sentiment, memecoin scandals, and lack of capital for new token launches are driving this weakness." Since mid-December, most altcoins have lost between 30% and 80% of their value, according to Arca. Solana faces added pressure from token unlock Solana has seen particularly steep losses, losing around $50 billion in market value over the past month. The decline was partially triggered by a controversy involving Argentina's President Javier Milei and a memecoin called Libra, which collapsed in value. Adding to the selling pressure, $1.72 billion worth of SOL is set to be unlocked on March 1, according to research firm Messari. "With continued token unlocks and increased supply, many investors are selling," said Edward Chin, co-founder of Parataxis Capital. "Most traders are already fully invested in altcoins, and any new capital is flowing into Bitcoin. This explains Bitcoin's relative strength and continued market dominance. Without a strong narrative in the altcoin sector, we could see further declines." Bybit fack fallout still weighs on market Ether remains under pressure even as Bybit pledged to fully replenish the estimated $1.5 billion lost to hackers. The Dubai-based exchange reportedly borrowed Ether and appears to have purchased additional tokens to cover the loss, according to a repost on X from Bybit CEO Ben Zhou. Crypto stocks decline alongside market sell-off The broader cryptocurrency downturn also hit crypto-related stocks. Coinbase Global Inc. closed lower for the sixth consecutive day. MicroStrategy fell 5.7%, turning negative for the year. Bitcoin miner MARA Holdings Inc. declined 5.3% on Monday, after dropping 13% last week. Market outlook remains uncertain With ongoing market volatility, token unlocks, and weak investor sentiment, analysts suggest that altcoins may continue to bleed until a new catalyst emerges.
