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📉 Why Crypto’s Not Joining the Party While Global Markets Are

📉 Why Crypto’s Not Joining the Party While Global Markets Are 🎉 Just before the recent sell-off, market maker Wintermute dropped a macro report on why crypto isn’t riding the wave of the booming risk market. ➡️ The Macro Picture Looks Strong 💪 The global scene is looking bright! Interest rates are dropping, quantitative tightening's done, and stocks are flirting with record highs. You’d think this would give crypto a boost, but nope! After the latest FOMC meeting, expectations for a rate cut in December nosedived, sparking some risk aversion. Stocks bounced back like champs, but crypto? Not so much. ➡️ Liquidity Exists But Flows Elsewhere 💸 It’s not about a lack of cash; it’s where it’s going. Global liquidity is on the rise, yet hardly any finds its way to crypto. Stablecoin supply has skyrocketed over 50% this year—plenty of cash out there! But Bitcoin ETFs have hit a wall at $150 billion and trading across digital platforms has plummeted. The money train is now headed tow

📉 Why Crypto’s Not Joining the Party While Global Markets Are 🎉

Just before the recent sell-off, market maker Wintermute dropped a macro report on why crypto isn’t riding the wave of the booming risk market.

➡️ The Macro Picture Looks Strong 💪

The global scene is looking bright! Interest rates are dropping, quantitative tightening's done, and stocks are flirting with record highs. You’d think this would give crypto a boost, but nope! After the latest FOMC meeting, expectations for a rate cut in December nosedived, sparking some risk aversion. Stocks bounced back like champs, but crypto? Not so much.

➡️ Liquidity Exists But Flows Elsewhere 💸

It’s not about a lack of cash; it’s where it’s going. Global liquidity is on the rise, yet hardly any finds its way to crypto. Stablecoin supply has skyrocketed over 50% this year—plenty of cash out there! But Bitcoin ETFs have hit a wall at $150 billion and trading across digital platforms has plummeted. The money train is now headed towards stocks, AI, and other hot sectors.

➡️ The Market Structure Is Healthy 🧹

Even with a $1.7 billion liquidation wave, crypto leverage is down and volatility is tamed. The market looks cleaner than in past crises! Bitcoin's holding strong thanks to steady ETF inflows and limited exchange supply while Ethereum and some L1/L2 tokens are showing early signs of life!

➡️ The Four-Year Cycle Is Over 🔄

Wintermute points out that the halving hype isn’t driving trends anymore. Miner supply just isn’t pulling weight in this maturing market; liquidity flow is king now! When ETF inflows kick back up and trading activity picks up again—that could spark the next big rally!

➡️ What to Watch Next 👀

Keep an eye on ETF demand, DAT trading volume, and stablecoin growth—those are your signals to see if capital is finally swinging back into crypto!

In short: the macro environment favors risk assets overall, but liquidity flow will dictate where those sweet returns land. For now? Traditional markets are still stealing the spotlight! 🌟