Wintermute Highlights Shift to Internal Crypto Market Dynamics
- Wintermute’s Jasper De Maere notes that crypto has entered a self-funded phase, with money circulating internally.
- The growth of liquidity channels such as stablecoins and exchange-traded funds is slowing down.
- Wintermute warns of internal market rotation, impacting the expansion of the crypto market.
Despite supportive global liquidity conditions, Wintermute identifies a shift in the crypto market’s dynamics towards internal funding rather than external expansion. This change is reflected in the deceleration of key liquidity channels like stablecoins and ETFs.
The report highlights a significant transition within the crypto space, where internal circulation of funds may limit market growth potential by reducing external inflows through traditional liquidity channels. (Source)
