Arca Chief Investment Officer: This round of plunge is the "most bizarre cryptocurrency sell-off in history", and it is still unclear why it has been falling

Jeff Dorman, Arca's chief investment officer, called the crash "the most bizarre cryptocurrency sell-off in history" in a post this morning. The market clearly has many positive factors - the Federal Reserve has cut interest rates, quantitative tightening is coming to an end, consumer spending is strong, corporate profits are record records, artificial intelligence demand continues to be strong, and the stock, credit and gold and silver markets are setting record highs every month; at the same time, all the so-called reasons for the cryptocurrency sell-off are also untenable - MSTR has not sold, Tether has not insolvent, DAT has not reduced its holdings, Nvidia has not exploded, the Federal Reserve has not turned hawkish, and the tariff war has not resumed.
"I still don't understand why cryptocurrencies have been falling," says Mr. Jeff. "The reason may be simple. Despite the positive developments in technology, Washington policy and Wall Street movements, there is nothing to change the fact that there is currently a lack of buying within the cryptocurrency ecosystem. Native crypto investors are exhausted and new funds have not been able to enter the market. Although investors are forward-looking, they will not easily change their investment process - so while Vanguard, State Street, New York Mellon, JPMorgan, Morgan Stanley, Goldman Sachs and others are about to enter the market, they are not in place today. The flood of funds will not really come until these institutions can easily allocate crypto assets through the existing licensing system and investment process."