TechFlow, Nov 4 — Cryptocurrency market maker Wintermute said on social media that despite supportive macro conditions—including interest rate cuts, the end of quantitative tightening, and equities nearing all-time highs—cryptocurrencies continue to underperform relative to other asset classes.
The post noted that while global liquidity is expanding, funds are not flowing into the crypto market. Of the three major drivers of capital inflows that powered performance in the first half of the year, only stablecoin supply has continued to grow (up 50% year-to-date, adding $100 billion), while ETF inflows have stagnated since summer, BTC ETF assets under management remain around $150 billion, and digital asset tokenization (DAT) activity has dried up.
Among altcoins, gaming tokens dropped 21% weekly, Layer-2 networks fell 19%, and Meme coins declined 18%. Only AI and DePIN sectors showed relative resilience.
Wintermute stated that the four-year cycle narrative no longer applies to a maturing market, and liquidity is now the key driver of performance. It will closely monitor ETF inflows and DAT activity, which would signal a return of liquidity to the crypto market.
