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Garrett Jin: BTC, ETH underperforming other risk assets due to deleveraging and market structure issues
Summary: BTC OG insider Garrett Jin posted on social media that Bitcoin and Ethereum have recently underperformed other risk assets, mainly due to the ongoing deleveraging cycle and microstructure issues in the crypto market, rather than deteriorating fundamentals. He pointed out that the massive deleveraging since October last year has cleared out leveraged retail funds, while ...
BTC OG insider Garrett Jin posted on social media that Bitcoin and Ethereum have recently underperformed other risk assets, mainly due to the ongoing deleveraging cycle and microstructure issues in the crypto market, rather than deteriorating fundamentals. He pointed out that the massive deleveraging since October last year has cleared out leveraged retail funds, while AI concept stocks and precious metals have attracted a lot of speculative capital; professional institutions in the crypto market still have low participation, making it susceptible to short-term narratives and dominated by some exchanges, market makers, and speculative funds. Garrett emphasized that looking at a 6-year cycle, BTC and ETH are still outperforming most assets, with current performance resembling mean reversion in the long-term trend. With improving regulatory environment, ample liquidity, and futures trading volume nearing historic lows, the deleveraging process for BTC and ETH may be nearing its end.
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Link: Garrett Jin: BTC, ETH underperforming other risk assets due to deleveraging and market structure issues [Copy]
