WATCH: Where Is the Crypto Market Headed Next Week?

Arca Chief Investment Officer Jeff Dorman joined CoinDesk’s Brad Keoun on Thursday, Oct. 24, to talk about the current downward trend in crypto pricing and why things may be looking up. (On Friday, bitcoin’s price shot up 13 percent to more than $8,400.)

“It’s always difficult real-time to understand what’s causing a price decline or a price appreciation. After the fact, you can piece together pieces of news that may have caused it,” said Dorman, adding:

“I think over the last months, not just yesterday, you’re definitely seeing some miners selling, which is causing some downward pressure. But the reality is, I think these selloffs are more about lack of money in the system right now. There’s just not new money coming in at the moment.”

His take? There is no “buyer of last resort” in crypto, which means that “distressed” assets don’t get scooped up.

Dorman also commented on the Libra hearings, saying he’s not certain they had much effect.

“Well, you know, I think retail investors probably aren’t spending a lot of time watching C-SPAN,” he said.

You can watch the rest of the interview above or read the transcript below.

Brad Keoun: We’re here today with Jeff Dorman. He’s the chief investment officer of Arca. We’re very lucky to have him. He has a long resume of experience. He’s a former high-yield bond trader with big firms like Citadel, Merrill Lynch and Friedman, Billings, Ramsey, and lately he’s been bringing that experience to bear in the crypto space. Jeff, thank you so much for your time today.

Jeff Dorman: Absolutely. Thanks for having me.

BK: Yesterday we had a very big move down in bitcoin, and I’d love to get your thoughts there on what happened.

JD: Sure, it is always difficult to understand what’s causing a price decline or price appreciation. After the fact, you can piece together pieces of news that may have caused it. I think over the last months, not just yesterday,…

Source Link