Altcoins stay under pressure with Fear and Greed Index fixed at 24.
Per the current Crypto news, liquidity is shrinking as Wintermute spotted slower inflows.
This prognosis comes despite a rise in stablecoins, ETFs, and DATs from $180 billion to $560 billion this year.
This is because new money is not entering the market, leading to weaker rallies and fewer assets gaining strength.
Wintermute, a major trading firm in the crypto space, says liquidity in the market has dropped.
Per the crypto news, the company explained that even though the value of stablecoins, exchange-traded funds (ETFs), and Digital asset Treasuries (DATs) has grown from $180 billion to $560 billion since early 2024.
The research firm noted that there is little sign of new capital entering.
According to the firm, money is now moving between existing assets rather than coming from outside investors.
In addition, this makes the crypto prices gain short-lived and limits how far rallies can go.
Bitcoin fell bellow $100k, down 3% in the past 24 hours after losing more than 9% in a week.
Meanwhile, Ethereum also moved downwards, losing 5% to $3,200. Its decline comes despite higher activity on its network.
Now, traders stayed cautious despite the spot Bitcoin ETF recording a slight rebound today, after losing more than $2 billion in recent days.
Analysts believe that without new liquidity, crypto prices could stay under pressure.
Market watcher Ted Pillows compared the current setup to 2019, when the U.S. Federal Reserve paused its policy of quantitative tightening.
Then, altcoins dropped about 40% and did not recover until the Fed started adding liquidity again.
He said the same trend might repeat if fresh funds do not return soon. Most altcoins could continue to fall, and only a few might see gains.
Market performance, he added, now depends on whether new capital comes back into the system.
Wintermute’s report pointed out that the recent rise in trading activity is coming mostly from internal capital rotation.
This means investors are moving money between coins instead of bringing in new funds.
That has caused rallies to fade quickly and narrowed the number of tokens attracting real interest.
Some market participants think this could be a temporary phase.
Others believe that unless macroeconomic conditions improve, crypto markets may remain in this slow state for a while.
In another crypto news, altcoins showed mixed performance on November 6. At its peak, Solana price traded at $160.75, up 1.54% in the past day but still down 14% for the week.
BNB slipped 0.61% to $947.34, while Cardano traded at $0.5361, down nearly 13% over seven days.
Dogecoin stood at $0.1630 after a 0.78% drop in 24 hours.
Litecoin and Monero were among the few gainers, rising 1.47% and 3.14% to $87.98 and $353.22 respectively.
Still, most major tokens have lost value in the past week.
The Altcoin Index stood at 23 out of 100, showing weak sentiment among traders.
The global crypto market cap is now $3.43 trillion, up 0.92%.
The CMC20 Index rose 0.62% to $216.6, while the Fear and Greed Index stayed low at 24, reflecting high caution among investors.
Market watchers believe that the current outlook shows how much crypto depends on steady liquidity.
Without a new flow of funds, even solid projects will find it hard to sustain gains. For now, the market is being driven more by internal trading than by new investment.
Wintermute’s warning highlights a key point: until stronger inflows return, the crypto market could remain stagnant.
Traders are watching to see when new money reenters and whether that will spark the next major move.
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