The Bitcoin, Ethereum Dump Is Over, Says Wintermute—Here's What's Next
Market-making firm Wintermute says crypto markets have entered a digestion phase rather than a directional trend, with activity concentrated primarily in Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
What Happened: The firm noted on Tuesday that markets are trading within a stable consolidation range as investors show greater tolerance for macro uncertainty.
Both retail and institutional flows remain positive for BTC and ETH, though with low leverage as traders wait for clearer signals from central banks.
Bitcoin climbed back toward ~$94,000, while total crypto market capitalization has bounced to ~$3.25 trillion.
Last Friday's sharp $4,000 BTC drop, triggered by roughly $2 billion in liquidations, highlighted lingering fragility, yet the market absorbed the shock quickly without cascading selloffs.
A cooling Nasdaq is pushing investors toward selective, high-quality risk.
In crypto, this is translating into rotation toward the majors, with inflows hitting both BTC and ETH.
Meanwhile, compressed basis and elevated implied volatility reflect ongoing uncertainty, with traders broadly eyeing a year-end range between $85,000 and $100,000.
Also Read: Bitcoin Holds $90,000 As Ethereum, XRP, Dogecoin Wobble On Weak ETF Inflows
Why It Matters: Wintermute emphasized that the focus now shifts squarely to central banks, the U.S. Federal Reserve decision on Wednesday and the Bank of Japan meeting next week, both of which could influence volatility.
With conviction low in altcoins, traders are allocating toward delta-neutral and carry strategies, particularly in smaller caps offering attractive funding.
Crypto trader Niels pointed out that retail Bitcoin selling continues to dry up.
"Shrimp" wallets (holders of <1 BTC) are now sending just 400 BTC per day to Binance, the lowest level ever recorded and less than half the pace seen last cycle.
With retail supply flowing into exchanges shrinking, circulating BTC tightens, creating one of the strongest bullish on-chain signals currently in play.
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