Bitcoin and the wider crypto market have seen a small recovery in the past two weeks. Crucible Capital General Partner Meltem Demirors, however, hit a cautious tone in the future of the Crypto Rally. In one interview On Bloomberg on March 25, Demirors tackled everything, from trade volumes and ETF intake to concern about “hidden leverage” in the crypto ecosystem.
“It’s a story about two cities. Sentiment is positive. You see a lot of enthusiasm about the direction of the Trump administration,” she said, referring to the renewed Buzz around Crypto in political rhetoric. “But when we look at markets, volumes are terrible. We are back in trade levels that we saw before the elections.”
Although the media attention for pro-Crypto signals of President Trump and World Liberty Financial has created an eruption of excitement, Demirors emphasized the need to separate the hype from tangible market activity. She noted that so far the data suggests a limited purchasing pressure – taking serious questions about where a lasting bid for Bitcoin and other crypto assets will come from.
Demirors discussed the performance of 2024 and emphasized the role of institutional ETF trade strategies in shaping the question: “We had ETF buyers. If we look at the ETF buyers based on 13F archives, are the majority of them that process the basic trading, right?
She explained that these companies often ‘buy the ETF and then short bitcoin’, conquering price spreads instead of looking for fundamental exposure. The dynamics surrounding micro strategy’s convert arbitration – where large institutional players use the publicly traded Bitcoin companies from MicroSstratey – complicates market flows. Demirors marked “growing concerns about a potential black swan when that trade relaxes.”
In recent sessions, certain Altcoins have recorded short -lived rallies that can at first sight imply that the appetite could be renewed among traders. Demirors was quick to contextualize these movements: “If we disable Bitcoin and Ether, [there’s been] No change in market capitalization of that long tail of crypto and no change in trade volume, it has been flat. Only the names are rotating. So it’s a game of musical seats. “
Market observers buzzed about President Trump’s online comments and closer ties between major financial players – such as Cantor Fitzgerald and Tether – amide wider regulatory conversations in Washington. Demirors suggested, however, that these developments are only part of the cycle: “Is this value accretion? We take liquidity from the crypto ecosystem, place it in the banking sector or put it in the pockets of the makers of these coins. So that value is an accretion to boost in Bitcoin and the wider Cryptoin.
Nevertheless, she repeated optimism about the resilience of Bitcoin, pointing to Bitcoin dominance that floats about 70%high-year.
However, she also expressed concern about hidden leverage in the system. From potential relaxed scenarios with the Bitcoin holdings from MicroSstratey to large distributions of Mt. GOX creditors and the defeated FTX platform, Demirors sees a possible wave of sales pressure: “We have Mt. Gox that starts to distribute.
The question of what the tide could reverse remains open, especially in the midst of disappointing volume data. “I am a simple girl,” Demirors added. “Every time I talk, I say it’s all about the flows.”
At the time of the press, BTC traded at $ 87,926.
