Wintermute: The traditional four-year cycle concept has expired and liquidity is a key factor in the current performance of cryptocurrencies

According to Foresight News, cryptocurrency market maker Wintermute issued an article saying that although the macro environment remains supportive, including interest rate cuts, the end of quantitative tightening, and the stock market is close to highs, cryptocurrencies continue to lag behind other asset classes. The article pointed out that global liquidity is expanding, but funds are not flowing into the cryptocurrency market. Of the three major inflow engines driving performance in the first half of the year, only stablecoin supply has continued to grow (up 50% on the year, adding $100 billion), while ETF inflows have stalled since the summer, with BTC ETF assets under management hovering around $150 billion and digital asset trading (DAT) activity drying up.

Wintermute believes the four-year cycle concept is no longer relevant in mature markets and liquidity is the key factor currently driving performance. ETF inflows and DAT activity will be closely monitored and will be important signals of liquidity returning to the cryptocurrency market.

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