Crypto Market Faces Liquidity Shortage!

The modern cryptocurrency market is confronting a serious challenge: a lack of fresh liquidity that is hindering its growth and leading to internal redistribution of funds. Experts from Wintermute, a leading player in the digital assets market, emphasize in their recent analysis that without an influx of external capital, the sector risks remaining in a state of stagnation, where money simply circulates between major assets such as Bitcoin (BTC), Ethereum (ETH) and other coins.

According to specialists' observations, liquidity has always been a key element determining the dynamics of the crypto market. It enables fast trading and the use of leverage, and its surplus is often directed toward risky assets during global economic upswings. However, recent months show a slowdown in this process. The main channels for fund inflows - stablecoins, exchange-traded funds (ETFs) and digital assets in corporate treasuries (DATs) - are losing momentum in growth. While these indicators surged rapidly at the beginning of 2024, by mid-2025 a plateau has emerged, forcing the market to rely solely on internal resources.

This situation leads to several negative consequences. Markets become more isolated, rallies prove short-lived, and volatility increases due to cascades of position liquidations rather than stable trends. Without fresh external capital, investors are compelled to redistribute funds among various cryptocurrencies, creating a "zero-sum game" effect where the overall market volume does not expand.

Wintermute believes that crypto lacks an influx of external money and until then, liquidity will continue to flow between BTC, ETH and other coins. The company is convinced that this phase is temporary, and the resumption of flows through stablecoins, ETFs or DATs could signal the return of macroeconomic support. External factors, such as the easing of central bank policies and the end of quantitative tightening in the US, could potentially contribute to this, but high rates on safe assets like government bonds are currently diverting funds to other sectors, such as stocks.

Experts advise investors to closely monitor indicators such as stablecoin issuance or asset growth in ETFs, as these could become harbingers of a new growth cycle. For now, the crypto market demonstrates resilience, but without an external "injection" of capital, its potential remains limited.