Why crypto feels weak — but isn’t broken.
By Maxime Laurent · 2026-01-29 13:38
Why crypto feels weak — but isn’t broken.
This drawdown isn’t macro doom. It’s rotation, leverage washout, and ugly microstructure.
Garrett Jin — former BitForex head and long-time $BTC OG — laid out a take that actually makes sense. Since October, speculative retail money has been flushed out. Too much leverage, too many 10–20x heroes. The market did what markets always do: it punished excess.
Where did the money go? Simple. AI stocks and precious metals. That’s where FOMO lives right now. Crypto capital is still weirdly isolated from TradFi, so flows don’t rebalance smoothly. Meanwhile, a retail-heavy market is easy prey for exchanges and aggressive funds hunting liquidations.
The key point: fundamentals aren’t the issue. Over six years, $BTC and $ETH crushed almost every asset class. This is rotation, not decay. Silver was dead money… until it wasn’t. Same movie, different actor.
Garrett’s conclusion resonates with me: as long as the “digital gold” narrative for $BTC holds, and $ETH keeps plugging into AI and RWA, a long-term bear market makes little sense. Add improving US regulation and a softer Fed, and conditions are quietly getting better.
The real villains? Market structure and manipulation, not geopolitics or tariffs. Deleveraging is almost done, futures volumes are near lows, and fundamentals are strengthening.
Not bullish euphoria. Just calm realism. Tranquille 😌
#bitcoin #BTC #ethereum #ETH #crypto #markets #rotation #CryptoFriture
This drawdown isn’t macro doom. It’s rotation, leverage washout, and ugly microstructure.
Garrett Jin — former BitForex head and long-time $BTC OG — laid out a take that actually makes sense. Since October, speculative retail money has been flushed out. Too much leverage, too many 10–20x heroes. The market did what markets always do: it punished excess.
Where did the money go? Simple. AI stocks and precious metals. That’s where FOMO lives right now. Crypto capital is still weirdly isolated from TradFi, so flows don’t rebalance smoothly. Meanwhile, a retail-heavy market is easy prey for exchanges and aggressive funds hunting liquidations.
The key point: fundamentals aren’t the issue. Over six years, $BTC and $ETH crushed almost every asset class. This is rotation, not decay. Silver was dead money… until it wasn’t. Same movie, different actor.
Garrett’s conclusion resonates with me: as long as the “digital gold” narrative for $BTC holds, and $ETH keeps plugging into AI and RWA, a long-term bear market makes little sense. Add improving US regulation and a softer Fed, and conditions are quietly getting better.
The real villains? Market structure and manipulation, not geopolitics or tariffs. Deleveraging is almost done, futures volumes are near lows, and fundamentals are strengthening.
Not bullish euphoria. Just calm realism. Tranquille 😌
#bitcoin #BTC #ethereum #ETH #crypto #markets #rotation #CryptoFriture
Disclaimer: This content is for informational purposes only and not financial advice.