{"id":54597,"date":"2025-03-26T13:00:59","date_gmt":"2025-03-26T13:00:59","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=54597"},"modified":"2025-03-26T13:00:59","modified_gmt":"2025-03-26T13:00:59","slug":"meltem-demirors-on-crypto-rally-are-we-so-back-not-so-fast","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=54597","title":{"rendered":"Meltem Demirors On Crypto Rally: \u2018Are We So Back? Not So Fast\u2019"},"content":{"rendered":"

Over the past two weeks, Bitcoin and the broader crypto market have seen a slight recovery. However, Crucible Capital General Partner Meltem Demirors struck a cautious tone on the future of the crypto rally. In an interview<\/a> on Bloomberg on March 25, Demirors addressed everything from trading volumes and ETF inflows to concerns about \u201chidden leverage\u201d in the crypto ecosystem.<\/p>\n

\u201cIt\u2019s a tale of two cities. Sentiment is positive. You see a lot of enthusiasm about the Trump administration policy direction,\u201d she said, referencing the renewed buzz around crypto in political rhetoric. \u201cBut if we look at markets, volumes are abysmal. We\u2019re back to trading levels we saw pre-election.\u201d<\/p>\n

While media coverage surrounding pro-crypto signals from President Trump and World Liberty Financial has created a burst of excitement, Demirors highlighted the need to separate hype from tangible market activity. She noted that so far, the data suggest limited buying pressure\u2014raising serious questions about where any lasting bid for Bitcoin and other crypto assets will come from.<\/p>\n

Discussing 2024\u2019s performance triggers, Demirors emphasized the role of institutional ETF trading strategies in shaping demand: \u201cWe had ETF buyers<\/a>. If we look at the ETF buyers based on 13F filings from December, the majority of those are firms that are farming the basis trade, right? They\u2019re not long-term holders. It\u2019s not mom and pop going out and buying in their brokerage.\u201d<\/p>\n

She explained that these firms often \u201cbuy the ETF and then short Bitcoin,\u201d capturing price spreads rather than seeking fundamental exposure. The dynamics surrounding MicroStrategy\u2019s convert arbitrage<\/a>\u2014where big institutional players leverage MicroStrategy\u2019s publicly traded Bitcoin holdings\u2014further complicate market flows. Demirors flagged \u201cgrowing concerns about a potential black swan if that trade unwinds.\u201d<\/p>\n

In recent sessions, certain altcoins have logged short-lived rallies that, on the surface, might imply renewed appetite among traders. Demirors was quick to contextualize these moves: \u201cIf we take out Bitcoin and Ether, [there\u2019s been] no change in market cap of that long tail of crypto and no change in trading volume, it\u2019s been flat. Just the names are rotating. So it\u2019s a game of musical chairs.\u201d<\/p>\n

Market observers have been buzzing over President Trump\u2019s online comments and closer ties between major financial players\u2014such as Cantor Fitzgerald<\/a> and Tether\u2014amid broader regulatory conversations in Washington. Demirors, however, suggested that these developments are merely part of the cycle: \u201cIs this value accretive? We\u2019re taking liquidity out of the crypto ecosystem, putting it into the banking sector or putting it into the pockets of the creators of these coins. So is that value accretive to boosting volume in Bitcoin and the broader crypto complex? Not necessarily.\u201d<\/p>\n

Still, she reiterated optimism about Bitcoin\u2019s resilience, pointing to Bitcoin dominance hovering around 70%\u2014a multi-year high.<\/p>\n

However, she also expressed concerns about hidden leverage in the system. From potential unwind scenarios involving MicroStrategy\u2019s Bitcoin holdings to large distributions from Mt. Gox<\/a> creditors and the defunct FTX platform, Demirors sees a possible wave of selling pressure: \u201cWe\u2019ve got Mt. Gox starting to distribute coins. FTX is distributing coins, so we\u2019ve got potential net sellers and distributions that may become net sellers. Where are the inflows coming from? Who else is left to buy?\u201d<\/p>\n

The question of what could reverse the tide remains open, especially amid disappointing volume data. \u201cI\u2019m a simple girl,\u201d Demirors added. \u201cEvery time I talk, I say it\u2019s all about the flows.\u201d<\/p>\n

At press time, BTC traded at $87,926.<\/p>","protected":false},"excerpt":{"rendered":"

Over the past two weeks, Bitcoin and the broader crypto market have seen a slight recovery. However, Crucible Capital General Partner Meltem Demirors struck a cautious tone on the future of the crypto rally. In an interview on Bloomberg on March 25, Demirors addressed everything from trading volumes and ETF inflows to concerns about \u201chidden […]<\/p>\n","protected":false},"author":0,"featured_media":54598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-54597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/54597"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54597"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/54597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/54598"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}