Market now rely on internal fund rotation as new liquidity inflows slow, Wintermute

Wintermute has warned that liquidity has stopped flowing into ￰0￱ recent price moves rely on reallocation, leading to lower potential for growth. Wintermute, one of the most prominent market makers in crypto, has warned that new liquidity is not coming into the ￰1￱ current price moves and trading depend on the turnover of remaining funds, instead of new ￰2￱ is now more capitalized, but the liquidity flows from the past year are slowing down, commented ￰3￱ also means rallies may be short-lived and lead to smaller ￰4￱ drives crypto cycles, and now, the money has stopped flowing in Stablecoins, ETFs, and DATs have grown from $180B to $560B since early 2024, but momentum has slowed Capital is rotating internally, not entering fresh → rallies die fast and breadth keeps narrowing ￰5￱ — Wintermute (@wintermute_t) November 6, 2025 At this stage, the crypto market may see shifts between whale owners and internal reallocation.

However, a true bull market recovery may be possible only after renewed external ￰6￱ expectations of a growing money supply, inflows to crypto are not ￰7￱ recent market moves have made investors more cautious, potentially setting up for a bear ￰8￱ has often served the internal transformation of crypto ￰9￱ market maker was also suspected of deliberately boosting BTC sales during the latest market ￰10￱ market maker most often works through Binance, and its effect is felt in some of the more dramatic price moves in recent ￰11￱ market maker still holds over $549M in crypto reserves, deploying them to centralized markets, DEXs like PancakeSwap, and perpetual futures markets like Aerodrome.

Wintermute: Liquidity drives prices more than adoption In the long term, crypto has seen wider adoption, even during bear market ￰12￱ tools for the latest bull market were created during relatively slow times in terms of liquidity and price action. Still, bull markets mostly depend on inflows of new funds, noted ￰13￱ previous cycles, the main source of liquidity was easily tracked – it was tied to the new minting of ￰14￱ the latest market cycle, the main sources of liquidity also included ETFs and treasury companies, both tapping funding from the open market or specialized deals with ￰15￱ funding is also becoming a factor, but it may also be connected to existing reserves and internal ￰16￱ token sales with external buyers are mostly targeting crypto insiders with funds from previous ￰17￱ turnover of existing stablecoins may be sufficient to keep the market alive, and even produce record-breaking ￰18￱ warns that new hot funds are avoiding crypto, with no signs of direct inflows and smaller demand for ETF and DAT company ￰19￱ liquidity returns to equity markets Wintermute reminded that after the latest Fed decision, the world economy still works in conditions of quantitative easing and the potential for more money ￰20￱ additional liquidity now seeks out opportunities in the stock market, which offers significant growth without crypto’s risky ￰21￱ stocks of crypto mining companies also serve as a proxy for the sector, draining some of the liquidity otherwise allocated to digital ￰22￱ trend for a shift to stocks affected even traditionally strong crypto markets like South Korea, further cutting into new liquidity ￰23￱ you're reading this, you’re already ￰24￱ there with our newsletter .