Wintermute offloaded some of its holdings after volatility heightened.
Bitcoin (BTC) is reclaiming market focus as volatility persists and many alternative tokens continue to lag, according to a fresh analysis from crypto liquidity provider Wintermute and the latest market price movements seen today. Late last week, the crypto markets experienced increased selling pressure, with Bitcoin falling below $85,000 and Ethereum below $3,000.
Liquidations surged once more, reaching nearly $600 million on Monday and approximately $400 million on both Wednesday and Thursday, as gains were quickly sold in a volatile market. By the end of the week, however, the market calmed, and, according to Wintermute, BTC gradually climbed back toward $90,000.
In its X post, Wintermute wrote, “As we head into the holiday period, market structure continues to narrow. Bitcoin dominance pushed higher again, reinforcing the trend that has defined much of the second half of the year.” However, it noted that altcoins remain under pressure, dragged down by large supply overhangs and a busy token unlock schedule.
Overall, leading cryptocurrencies continue to draw interest in buying. BTC has benefited from sustained demand, and ETH is also showing growing buying pressure going into year-end, the firm claimed. This trend would be consistent with the widely held premise that BTC must take the lead for the market to expand into more speculative risks.
The trading firm also noted that while spot buyers anchor the majors, derivatives have become key for price discovery, allowing net purchases of BTC and ETH even during sharp intraday moves caused by leveraged liquidations.
Funding and basis also stayed tight for the majors through the sell-off. Still, options markets continue to price diverse scenarios, with high implied volatility and positions divided between downside to mid-$80,000 and a rebound. It added that traditional finance continues to move into the space despite the recent volatility, noting that similar involvements in the past have been deliberate and long-lasting.
However, market conditions remain somewhat volatile, with low liquidity and desks decreasing activity. As the year-end and holiday season approaches, trading is expected to be more subdued and selective, with range-bound moves. Without a specific macroeconomic or policy anchor, price positioning remains the primary determiner of the market outcomes.
Earlier this month, on-chain data from Arkham Intelligence revealed that Wintermute offloaded significant cryptocurrency holdings — specifically Bitcoin and Ethereum, after prices began to slump and volatility in the cryptocurrency market increased across the board.
Reports circulated that Wintermute-backed wallets funneled large volumes of BTC and ETH to centralized venues, such as Binance, in late November and early December, with more than $1.5 billion in Bitcoin estimated to have moved in brief intervals over just three weeks.
According to blockchain data, the firm’s tracked holdings fell from around $540 million in late November to approximately $320 million at one point, before recovering part of the decline. Arkham now estimates that the company holds approximately $416 million on-chain, spread across multiple major cryptocurrencies, including 778,515 SOL tokens, 340 Bitcoins, and over $45 million worth of USDC.
Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.
