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The cryptocurrency landscape is witnessing significant movements in 2025, yet the chief investment officer of Arca, Jeff Dorman, is raising important questions regarding the nature of this market rally. In a recent thread on X, he challenges the notion that we are experiencing a broad crypto bull market, suggesting that only a select few large-cap tokens are driving the industry’s performance.
Understanding the Current Crypto Market Dynamics
Dorman points out that over 75% of the tokens in their coverage universe have seen negative performance year-to-date (YTD). Alarmingly, more than half of these tokens are down by 40% or more. This stark statistic raises concerns about the overall health of the crypto market and whether the current rally can be classified as a genuine bull market.
The Performance of Major Tokens
Despite the struggles of many smaller tokens, a handful of well-known cryptocurrencies have shown resilience. Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Binance Coin (BNB), and XRP have all demonstrated gains ranging from 20% to 40% this year. Dorman compares this scenario to traditional finance, where large-cap stocks can thrive while smaller ones suffer. He states, “This is the TradFi equivalent of the DJIA and GameStop having a good year, while small caps are -40%.”
The Importance of Selectivity in Investing
Dorman emphasizes that this uneven performance is, in fact, a healthy sign. He argues that broad rallies often lead to investor complacency, which can be detrimental. When weaker projects fail, it prompts investors to question their investments more critically, asking, “How are you doing this?” This shift in mindset is crucial, especially as investors cannot rely on the momentum of altcoins as they could in previous cycles.
Shifting Focus: Prioritizing Viable Projects
According to Dorman, the key to successful investing in the current climate is to identify projects with tangible business models. He advises, “Own stocks and tokens that actually make money & buy back their own tokens with the profits.” The days of speculative investments based solely on hype are over. Investors must focus on revenue-generating tokens and companies that provide real value.
The ‘FAANG’ Equivalent in Crypto
Dorman categorizes the tokens and companies that are performing well in 2025 into specific groups. Notably, assets linked to exchange-traded funds or digital asset trusts, such as BTC, ETH, and SOL, are leading the charge. Crypto-related equities like Circle, Galaxy Digital, and Coinbase, as well as miners such as Iris Energy and TeraWulf, are also faring well.
Additionally, he highlights what he refers to as “U.S. government coins,” including XRP and Chainlink’s LINK token, as noteworthy players. Beyond these, revenue-generating tokens that return value to holders—such as Hyperliquid’s HYPE, Pump.fun’s PUMP, and Maple Finance’s MPL/SKY—are emerging as relative winners.
Introducing the ‘BACHELORS’ and ‘BARHEAPs’
Earlier in the year, Dorman proposed a crypto equivalent to the well-known “FAANG” stocks, coining the acronym “BACHELORS” to represent tokens like BNB, AERO, CAKE, HYPE, ENA, LEO, OKB, RAY, and SKY (MKR). In his September 16 thread, he updated this list to the “BARHEAPs,” incorporating newer projects like PUMP. This categorization underscores the complexity of crypto’s growth narrative, which extends beyond mere headline gains.
What Lies Ahead for Crypto in 2025?
Dorman concludes that labeling 2025 as a bull market is misleading. The current environment reflects a narrow cycle led by a few major players and select revenue-focused projects rather than a widespread bullish trend. “The reason this has been a hard bull market is because it’s barely even a good year for crypto, let alone a bull market,” he explains.
Final Thoughts: Navigating the Future of Cryptocurrency
Investors must be vigilant and discerning as they navigate the evolving cryptocurrency landscape. The insights shared by Arca’s CIO serve as a reminder that understanding market dynamics and focusing on viable projects is essential for success. As we continue through 2025, the lessons learned will shape the future strategies of both retail and institutional investors.
To delve deeper into the world of cryptocurrencies and enhance your investment strategies, explore our comprehensive guides on buying cryptocurrencies and learn more about specific tokens like XRP, Ethereum, and Bitcoin.
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Meta Description: **Discover why Arca’s CIO Jeff Dorman believes the 2025 cryptocurrency rally isn’t a true bull market. Learn about token performances, investment strategies, and the importance of selectivity in this evolving landscape.**
