Crypto Lags Behind Other Asset Classes Despite Supportive Macro Conditions

Quick Breakdown 

• Crypto underperforms despite global liquidity expansion and rate cuts, says Wintermute.
• ETF inflows and DAT activity have stalled while stablecoins remain the only growth engine.
• Market structure remains healthy, but renewed inflows are key for the next crypto rally.

The crypto market continues to trail behind traditional asset classes despite a supportive macro backdrop marked by global rate cuts, the end of quantitative tightening, and strong equity performance, according to Wintermute’s latest market update.

While liquidity has expanded globally, capital inflows into crypto have slowed, with ETF activity and Digital Asset Token (DAT) volumes drying up. Stablecoins remain the only bright spot, recording over 50% growth year-to-date.

— Wintermute (@wintermute_t) November 4, 2025

Post-FOMC flows weigh on crypto performance

Following the U.S. Federal Reserve’s 25 basis-point rate cut and the conclusion of quantitative tightening, risk markets initially rallied before pulling back after Chair Jerome Powell signaled uncertainty about a December rate cut. The recalibration triggered a brief risk-off rotation, leaving crypto struggling to recover.

Bitcoin and Ethereum have remained range-bound around $107,000 and $3,700 respectively, while altcoins saw broad-based declines. The GMCI-30 index fell 12% last week, led by heavy losses in gaming (-21%), layer-2s (-19%), and meme tokens (-18%). Only AI (-3%) and DePIN (-4%) sectors showed resilience, supported by continued strength in select tokens like TAO.

Wintermute analysts described the selloff as “flow-driven rather than fundamental,” consistent with post-FOMC liquidity unwinds rather than systemic weakness.

Liquidity present but misallocated

According to Wintermute, the issue isn’t the absence of liquidity—it’s where that liquidity is flowing. Central banks are easing into relative economic strength, a rare condition that typically precedes risk-on environments. However, much of this new capital is bypassing crypto, flowing instead into equities, AI, and prediction markets.

With ETF inflows plateauing around $150 billion and DAT trading activity collapsing, only stablecoins continue to expand. Wintermute concludes that monitoring ETF and DAT activity will be key indicators for when liquidity and momentum finally returns to the crypto market.

In another development, Wintermute secured a Bitcoin-backed credit facility from Cantor Fitzgerald, marking its participation in the investment bank’s newly launched $2 billion Bitcoin Financing Business. The partnership underscores the growing overlap between institutional finance and crypto-native liquidity providers, even as the broader market consolidates.

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