Garrett Jin: BTC and ETH underperform other risk assets due to deleveraging and market structure issues

BlockBeats News, January 29 — “BTC OG Insider Whale” agent Garrett Jin posted an article on social media stating that Bitcoin and Ethereum have recently underperformed other risk assets, mainly due to the market still being in the tail end of the de-leverage cycle and microstructural issues in the crypto market, rather than a deterioration in fundamentals.

He pointed out that the large-scale de-leverage cleanup since October last year has wiped out high-leverage retail funds, while AI concept stocks and precious metals have absorbed a large amount of speculative capital; the participation of professional institutions in the crypto market remains low, making it susceptible to short-term narratives and dominated by some exchanges, market makers, and speculative funds.

Garrett emphasized that over a 6-year cycle, BTC and ETH still outperform most assets, and their current performance resembles mean reversion within a long-term trend. As the regulatory environment improves, liquidity margins loosen, and futures trading volume approaches historic lows, the de-leverage process for BTC and ETH may be nearing its end.