The chief investment officer of digital asset manager Arca has raised significant questions about the nature of the crypto market in 2025, arguing that the traditional notion of a widespread bull market is misleading. In a recent thread on X, Jeff Dorman highlighted that over 75% of the tokens under Arca’s coverage have experienced negative performance year-to-date, with more than half of these tokens down by 40% or more. He pointed out that many of the few tokens that have shown gains are “complete nonsense coins and memecoins” that serious investors typically disregard, naming litecoin and bitcoin cash as examples.
In contrast, established cryptocurrencies like Bitcoin, Ethereum, Solana, Binance Coin, and XRP have seen increases ranging between 20% and 40% this year. Dorman drew parallels to traditional finance, where blue-chip stocks can thrive while smaller ones struggle, noting that the current trend resembles a scenario where major indices perform well while small-cap stocks falter.
Dorman believes this discrepancy could be a healthy sign for the market. He stated that broad-based rallies often lead to complacency among investors, while uneven performance compels better decision-making. He emphasized that when underperforming projects fail, investors start to critically assess what is working and why, which is essential for the maturation of the market.
Looking ahead, he underscored the need for investors in 2025 to prioritize projects with solid business models rather than relying on the momentum of altcoins. Dorman advised, “Own stocks and tokens that actually make money and buy back their own tokens with the profits,” asserting that the era of blindly investing in any token without due diligence is over.
Dorman identified that the stronger performers in 2025 generally belong to certain categories. The tokens that are connected to exchange-traded funds and digital asset trusts, such as Bitcoin, Ethereum, and Solana, have been leading the charge. Investments in crypto-related equities, including firms like Circle, Galaxy Digital, Coinbase, and mining companies such as Iris Energy and TeraWulf, have also shown resilience. Additionally, he mentioned “U.S. government coins,” referring to XRP and Chainlink’s LINK token, as noteworthy.
He highlighted specific revenue-generating tokens that have provided returns to their holders, naming Hyperliquid’s HYPE, Pump.fun’s PUMP, and Maple Finance’s MPL/SKY as notable examples. Earlier this year, Dorman proposed a crypto equivalent to the well-known “FAANG” stocks, introducing the concept of the “BACHELORS” acronym with tokens like BNB and HYPE. In his recent communication, he updated this idea to the “BARHEAPs,” incorporating newer projects including PUMP.
Ultimately, Dorman conveyed that the growth narrative in crypto for 2025 is more complex than it might appear from surface-level gains. He cautioned that labelling the year a “bull market” is somewhat inaccurate, suggesting that it better represents a limited cycle characterized by a small number of major players alongside select revenue-driven projects. He concluded by stating, “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.”
