{"id":90670,"date":"2025-11-05T12:15:23","date_gmt":"2025-11-05T09:15:23","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=90670"},"modified":"2025-11-05T12:20:22","modified_gmt":"2025-11-05T09:20:22","slug":"wintermute-analysts-identify-causes-of-cryptocurrency-market-stagnation","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/wintermute-analysts-identify-causes-of-cryptocurrency-market-stagnation\/","title":{"rendered":"Wintermute Analysts Identify Causes of Cryptocurrency Market Stagnation"},"content":{"rendered":"<p>Cryptocurrencies are showing the worst performance among all asset classes, despite favourable macroeconomic events. Analysts at Wintermute attribute this to the redistribution of cash flows into other segments.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"zxx\" dir=\"ltr\"><a href=\"https:\/\/t.co\/0x7UKVwQZo\">https:\/\/t.co\/0x7UKVwQZo<\/a><\/p>\n<p>\u2014 Wintermute (@wintermute_t) <a href=\"https:\/\/twitter.com\/wintermute_t\/status\/1985631560021000352?ref_src=twsrc%5Etfw\">November 4, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to them, global liquidity continues to expand against the backdrop of <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-shows-tepid-reaction-to-feds-rate-cut\">the Federal Reserve&#8217;s<span data-descr=\"Federal Reserve System of the USA\" class=\"old_tooltip\"> rate cuts<\/a> and the end of <a href=\"https:\/\/forklog.com\/en\/news\/why-do-federal-reserve-decisions-move-bitcoins-price\">quantitative tightening<\/a>.\u00a0<\/p>\n<p>The only negative aspect was Federal Reserve Chairman Jerome Powell&#8217;s uncertainty regarding further monetary policy easing. The likelihood of another rate cut in December fell from 95% to 68%, prompting investors to shift to defensive strategies.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The sell-off was not panic-driven but rather technical, resembling portfolio rebalancing. However, while the stock market quickly recovered, the cryptocurrency segment continued to move sideways,&#8221; the experts noted.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>The primary factor in the current market dynamics, they said, is the distribution of liquidity. Of the three key sources of inflow \u2014 <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-cryptocurrency-etf\">ETFs<\/a>, <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoins<\/a>, and <span data-descr=\"digital asset treasury \u2014 a company with crypto assets on its balance sheet\" class=\"old_tooltip\">DAT<\/span> \u2014 only &#8220;stable coins&#8221; are functioning, with their volume increasing by $100 billion since the beginning of the year.<\/p>\n<h2 class=\"wp-block-heading\">What Next?\u00a0<\/h2>\n<p>Wintermute specialists emphasized that the market structure remains healthy \u2014 leverage has decreased, and volatility is under control.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Bitcoin remains an anchor with steady inflows into ETFs and limited supply on exchanges, while Ethereum and certain L1\/<\/em><a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-layer%e2%80%912-solution-in-blockchain\"><em>L2 <\/em><\/a><em>tokens show early signs of relative strength,&#8221; they stated.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>In the past 24 hours, the price of the leading cryptocurrency <a href=\"https:\/\/forklog.com\/en\/news\/extreme-fear-bitcoin-slips-below-the-100000-psychological-mark\">dropped<\/a> nearly 3% to approximately $101,400. Ethereum fell by 5.5%, trading at around $3,300 at the time of writing.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"664\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-3a5a4a63b85fbbd6-8726555836052508-1024x664.png\" alt=\"image\" class=\"wp-image-268996\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-3a5a4a63b85fbbd6-8726555836052508-1024x664.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-3a5a4a63b85fbbd6-8726555836052508-300x194.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-3a5a4a63b85fbbd6-8726555836052508-768x498.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-3a5a4a63b85fbbd6-8726555836052508-1536x995.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-3a5a4a63b85fbbd6-8726555836052508.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.coingecko.com\/\">CoinGecko<\/a>.\u00a0<\/figcaption><\/figure>\n<p>Defying the overall trend, coins of decentralized exchanges for trading perpetual futures, such as <a href=\"https:\/\/forklog.com\/en\/news\/the-price-of-popularity-and-a-lesson-for-all-hyperliquid\">Hyperliquid<\/a> (+6.6% in 24 hours) and Aster (+16.9%), rose. <a href=\"https:\/\/forklog.com\/en\/news\/what-are-privacy-coins\">Anonymous coins<\/a> also continue to grow \u2014 Monero&#8217;s <a href=\"https:\/\/forklog.com\/en\/news\/what-is-monero-xmr\">prices<\/a> increased by 7.8% over the past 24 hours.\u00a0<\/p>\n<p>To resume the upward momentum of major cryptocurrencies, increased inflows into exchange-traded funds and purchases by crypto treasuries are necessary, experts noted.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"579\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/img-00f9d4a958829088-8726570599611622-1024x579.png\" alt=\"image\" class=\"wp-image-268997\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/img-00f9d4a958829088-8726570599611622-1024x579.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/img-00f9d4a958829088-8726570599611622-300x170.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/img-00f9d4a958829088-8726570599611622-768x434.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/img-00f9d4a958829088-8726570599611622-1536x869.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/img-00f9d4a958829088-8726570599611622.png 1842w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Chart of inflows and outflows in spot Bitcoin ETFs. Source: <a href=\"https:\/\/sosovalue.com\/assets\/etf\/us-btc-spot\">SoSoValue<\/a>.\u00a0<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The concept of the four-year cycle has lost its relevance. The mechanics that previously drove it \u2014 miner supply and <\/em><a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-bitcoin-halving\"><em>halvings<\/em><\/a><em> \u2014 have lost significance in a mature market. Now it is defined by liquidity,&#8221; explained Wintermute.\u00a0<\/em><\/p>\n<\/blockquote>\n<p>Earlier in October, K33 analysts <a href=\"https:\/\/forklog.com\/en\/news\/k33-analysts-declare-the-end-of-bitcoins-four-year-cycle\">declared<\/a> the &#8220;death&#8221; of the Bitcoin cycle.<\/p>\n<p>Investment Director of Bitwise <a href=\"https:\/\/forklog.com\/en\/news\/bitwise-cio-declares-bitcoin-cycles-obsolete\">Matt Hougan<\/a> and CEO of CryptoQuant <a href=\"https:\/\/forklog.com\/en\/news\/cryptoquant-ceo-acknowledges-bitcoin-cycle-theorys-obsolescence\">Ki Young Ju<\/a> share a similar view.\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cryptocurrencies are showing the worst performance among all asset classes. Analysts at Wintermute attribute this to the redistribution of cash flows into other segments.<\/p>\n","protected":false},"author":1,"featured_media":90671,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Cryptocurrencies are underperforming despite favourable macroeconomic events.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,46,1001,1149],"class_list":["post-90670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-ethereum","tag-liquidity","tag-wintermute"],"aioseo_notices":[],"amp_enabled":true,"views":"242","promo_type":"1","layout_type":"1","short_excerpt":"Cryptocurrencies are underperforming despite favourable macroeconomic events.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=90670"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90670\/revisions"}],"predecessor-version":[{"id":90672,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/90670\/revisions\/90672"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/90671"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=90670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=90670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=90670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}