In this most curious market of cryptocurrencies, it appears that our dear Bitcoin has experienced a rather alarming decline, which has sent many an investor into a flurry of dismay. Yet, one Jeff Dorman, Chief Investment Officer of Arca, has taken it upon himself to assure us that it is not the whimsical nature of our beloved crypto that has caused this tumult, but rather the rather mundane activities of Wall Street funds withdrawing their considerable fortunes from all corners of the financial realm.
During a recent discourse on the Milk Road Show, Mr. Dorman elucidated that it was not the frantic sell-offs by crypto enthusiasts that triggered this downfall, but rather a grand exodus orchestrated by the institutional traders who, it seems, have quite the heavy hand in these matters. Notably, platforms specifically designed for cryptocurrency-such as Deribit and Binance-remained surprisingly unruffled amidst the chaos, much like a swan gliding gracefully across a pond while paddling vigorously beneath the surface.
To put it plainly, traditional finance has once again cast its long shadow over Bitcoin, dragging it down alongside everything else in its path. In delightful contrast, it appears that the ordinary crypto holders have taken it upon themselves to seize this opportunity, engaging in the rather bold endeavor of purchasing during this so-called ‘dip.’ One can only admire their plucky spirit!
The Myth of the Four-Year Cycle
Mr. Dorman has also chosen to challenge one of the most cherished notions within the realm of cryptocurrency-the notion of the four-year cycle. He posits that this theory rests precariously upon merely two instances, specifically the years 2018 and 2022, both of which were marred by the Federal Reserve’s rate hikes rather than any misdeeds within the crypto sphere itself.
As Bitcoin finds itself increasingly entangled with ETFs and institutional capital, these outdated patterns hold even less significance in our modern era. Mr. Dorman contends that this cycle may only persist if a sufficient number of individuals choose to believe in its validity and panic at the first sign of a decline-how very human of us!
Three Sectors of Crypto Flourishing
In his great wisdom, Mr. Dorman has identified three sectors that are blossoming quite splendidly, regardless of Bitcoin’s current plight.
Firstly, we have DeFi, which is witnessing an impressive influx of users, an enviable amount of capital locked away in various protocols, and a notable migration of trading volume from centralized exchanges. Protocols like Hyperliquid and Pump.Fun are generating tangible revenue and utilizing it to repurchase their own tokens-how utterly responsible!
Secondly, stablecoins have achieved a remarkable transaction volume of $10 trillion in January 2026 alone. Institutions such as JP Morgan, Citi, and PayPal have decided to enter this space with their own stablecoin offerings, as if they were invited guests at a most exclusive gala.
Lastly, we find ourselves in the realm of Real World Asset (RWA) tokenization, which holds the promise of immense potential in the long term. A staggering $600 trillion worth of real assets, including stocks, bonds, and real estate, remain off-chain, with only a paltry $1 trillion having ventured on-chain thus far. It is indeed comforting to know that esteemed firms like BlackRock, Goldman Sachs, and Apollo are already making strides in this area.
The Importance of Token Buybacks
Mr. Dorman, with delightful frankness, has delineated what distinguishes genuine value from mere fleeting hype. According to him, buybacks stand as the solitary method through which the success of a protocol truly benefits its token holders.
He cites Pump.Fun as a prime example, boasting a valuation of $2 billion, generating a remarkable $500 million in daily revenue, and allocating a staggering 99% of that sum toward repurchasing tokens. At such a pace, the entire supply could be acquired in less than three and a half years-how astonishingly efficient!
“I’ve been investing in crypto professionally for eight years,” Mr. Dorman remarked. “I’ve never heard anybody come up with even a reasonable argument for why Bitcoin should be worth anything other than just it’s gold is worth X and therefore Bitcoin should be worth some percentage of X.”
For those among us who find themselves preoccupied with the incessant fluctuations of Bitcoin’s value, Mr. Dorman’s insights are rather thought-provoking. The aspects of the cryptocurrency world that may well thrive in 2026 do not seem to be waiting for our dear BTC to make its next move.
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2026-02-17 14:52