The State of Crypto: Slow Money vs. Fast Money in Today’s Market

“We need the government to reopen. We need some more regulatory progress.” – 03:45

Andrew Baehr, Head of Product & Research at Coindesk Indices, joins Remy Blaire to discuss the contrasting narratives within the crypto market, distinguishing between the “slow money” story, which reflects institutional growth and consolidation, and the “fast money” story, characterized by volatility and uncertainty.

Andy discusses recent mergers and acquisitions in the crypto space, such as Coinbase’s acquisition of Echo and FalconX’s purchase of 21Shares, indicating a strong institutional interest in the sector. He also notes the significant number of ETF filings, with over 150 submissions, including ProShares’ recent filing for a CoinGest 20 ETF, which signals ongoing growth and development in the market.

However, the conversation takes a turn as Andy addresses the challenges currently facing the market. He describes the market as feeling “tender,” particularly in the aftermath of the October 11th event, which he refers to as a “super liquidation event.” This incident exposed vulnerabilities in how centralized exchanges manage extreme market conditions, contributing to a cautious sentiment among investors. Additionally, the ongoing government shutdown and diminishing hopes for regulatory clarity, particularly regarding the Clarity Act, further weigh on market sentiment.

Remy emphasizes the importance of maintaining perspective, noting that while Bitcoin and Ether have experienced recent pullbacks, they remain significantly up year-to-date. Even gold is mentioned as a resilient asset, maintaining a level above 4,000 and showing over a 50% increase for the year. As they look ahead, Andy highlights the need for regulatory progress and the reopening of the government as potential catalysts for market recovery.