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

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

Daily HodlDaily Hodl2025/10/20 16:00
By:by Daily Hodl Staff

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.”

Crypto Resetting As Market Dynamics Suggest Recovery Rather Than Collapse, Says Arca CIO – Here’s Why image 0 Source: Arca

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.

Generated Image: Midjourney

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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