TechFlow news, November 5 — Wintermute's latest report indicates that with the Fed cutting interest rates by 25 basis points and quantitative tightening ending, stock markets are nearing highs, yet the crypto market has failed to rally in tandem. BTC and ETH are hovering around $107,000 and $3,700 respectively, while most altcoins have seen significant declines, with the GMCI-30 index dropping 12% last week.
Liquidity remains a key issue—global liquidity is expanding, but funds are not flowing into the crypto market. Among the three major sources of inflows, ETF inflows have plateaued (BTC ETF assets under management at approximately $150 billion), DAT activity has significantly declined, and only stablecoin supply continues to grow (up 50% year-to-date, around $100 billion).
Analysts believe market structure remains healthy, leverage has been cleared, and volatility is manageable, but renewed ETF inflows or increased DAT activity are needed as signals of liquidity returning. The traditional four-year cycle narrative no longer applies; current market behavior is primarily driven by liquidity.
