Stablecoins Outshine ETFs and DATs as Crypto Markets Await Institutional Inflows
Wintermute's latest analysis reveals a stark divergence in crypto market dynamics. While global liquidity expands, digital assets remain sidelined as capital flows into equities and AI sectors. Stablecoins stand as the sole growth segment, reflecting muted but steady activity.
The traditional four-year cycle theory appears obsolete, with liquidity trends now dictating market movements. Despite a cleaner market structure following leverage unwinding, the absence of new ETF or Digital Asset Trust inflows continues to cap upside potential.
Supportive macro conditions - including Fed rate cuts and the end of quantitative tightening - have failed to spark crypto momentum. The market's next leg up likely depends on renewed institutional participation through regulated investment vehicles.
