Crypto Resetting As Market Dynamics Suggest Recovery Rather Than Collapse, Says Arca CIO – Here’s Why

A leading digital asset research firm’s Chief Investment Officer (CIO) is seeing signs of a coming crypto rally.

In a new research post, Arca CIO Jeff Dorman says that despite crypto’s recent volatility, there is a light at the end of the tunnel.

“While the road ahead remains rocky, the cracks in the infrastructure and sentiment are showing signs of healing.

By Monday of last week, a meaningful bounce was already underway with BTC rising to $115K, and ETH and SOL jumping 9% each.

Trading volumes registered a week-over-week uptick (total exchange volume up ~15%) and open interest on decentralized perpetual platforms started building again after the major washout.”

According to Dorman, all signs point to the most recent downturn being a reset rather than a collapse.

“This alone is testimony that the system is not broken, it’s resetting. When markets crack, you want to see layered recovery:

• Liquidity returning
• Participation resuming
• Interest building

And that’s exactly what we’re seeing. The exchange ecosystem isn’t dead, the on-chain derivatives plumbing isn’t collapsed.”

In early October, the total crypto market cap reached a monthly high of $4.38 trillion.

Since then, it has dipped as low as $3.7 trillion, and is currently valued at $3.84 trillion, a 12% drop from early October.

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