Garrett Jin: BTC, ETH Underperform Other Risk Assets Due to Deleveraging and Market Structure Issues
BlockBeats News, January 29th, Garrett Jin, the "BTC OG Whale Insider," agent, posted an article on a social media platform stating that Bitcoin and Ethereum have recently significantly underperformed other risk assets. The main reason is that the market is still in the late stage of a deleveraging cycle and facing microstructural issues in the crypto market, rather than fundamental deterioration.
He pointed out that the massive deleveraging since October last year has liquidated leveraged retail funds, while AI concept stocks and precious metals have attracted a large amount of speculative capital. The institutional participation in the crypto market is still low, making it susceptible to short-term narratives and dominated by some exchanges, market makers, and speculative funds.
Garrett emphasized that looking back at a 6-year cycle, BTC and ETH are still outperforming most assets, and the current performance is more like a mean reversion within a long-term trend. With improving regulatory environment, ample liquidity at the margin, and futures trading volume approaching historic lows, the deleveraging process of BTC and ETH may be nearing its end.
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