Charles d’Haussy, CEO of the dYdX Foundation, said he does not view Bitcoin's drawdown of about 30% from its all time high as a traditional bear market and argued that today’s environment is fundamentally different from previous cycles.
Speaking with Yellow.com on the sidelines of Binance blockchain week, d’Haussy said “this is the first bear market which does not scare me,” pointing to behavioral changes among governments, large buyers, and institutions, as well as a maturing regulatory landscape.
Four Year Cycles A Past
He rejected the idea that crypto still moves in rigid four-year cycles, saying the market now mirrors the broader global environment.
“I think we are in a very volatile market,” he said, comparing crypto volatility to shifting geopolitical and macroeconomic conditions.
With advances in “AI, robotics, crypto,” and expectations that “governments will start printing again very soon,” he argued that market structure has changed enough to break past patterns.
A major reason he says he is unfazed: governments are no longer offloading seized Bitcoin the way they once did.
“The governments around the world are not selling the bitcoins they get… the US has the maximum amount of seized Bitcoin which it is not selling,” he noted.
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Combined with sovereign investments, such as Abu Dhabi increasing exposure through Blackrock's IBIT by 300%, he said, adding that these factors create natural floors beneath the market.
Rise Of DATs
He also highlighted the rise of Digital Asset Traders (DATs), describing them as persistent buyers. “These companies will keep buying and buying… they bring a floor.” Even through potential turbulence ahead, he believes the downside is increasingly cushioned.
D’Haussy tied his confidence to talent and regulation as well. “The talents we find in crypto nowadays… are proper professionals,” he said, contrasting this with earlier cycles dominated by “explorers or tourists.”
Regulatory clarity in multiple regions, he added, is another break from the past: “Previous cycles, there was no regulation… nowadays you can get some regulations.”
He pointed out the tax incentives governments now have to support the sector. “The tax man loves crypto. Every country is taxing crypto now… they will not forbid something which brings tax.”
Despite acknowledging that the industry might have some accidents on the way, d’Haussy said today’s landscape, stronger balance sheets, institutional participation, stablecoin adoption, tokenized assets, and government behavior removes the existential anxiety that defined earlier downturns.
“This bear market is the first bear market which does not scare me,” he emphasized. “It should not scare you neither," he further said.