Crypto market maker Wintermute has published a detailed analysis of Bitcoin’s recent crash below $60,000, identifying three simultaneous catalysts that triggered massive liquidations. The firm warns that structural selling pressure from U.S. investors and persistent ETF outflows have created a negative feedback loop. A sustained recovery, Wintermute argues, requires a reversal in key market indicators that currently signal continued fragility.
about Wintermute Analyzes Bitcoin Crash: Fed, Tech Earnings, Silver PlungeWintermute
2 posts last weekAI Capital Drain Threatens Crypto Liquidity, New Models Emerge
A stark warning from market maker Wintermute suggests the artificial intelligence sector’s insatiable appetite for capital could suffocate liquidity in cryptocurrency markets, potentially triggering heightened volatility and wider spreads. As trillions flow into AI infrastructure, this capital rotation poses a significant threat to assets like Bitcoin, which is currently consolidating around $69,000 post-halving. However, this challenge is catalyzing a critical divergence in Web3, with projects like SUBBD Token pioneering an alternative model that uses AI not as a capital drain but as a value-creation engine within self-sustaining token ecosystems.
about AI Capital Drain Threatens Crypto Liquidity, New Models EmergeCrypto ETFs Bleed $996M as Trump Greenland Shift Sparks Risk-Off Move
Spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced a massive $996 million single-day exodus on Wednesday, marking one of the most significant outflows in months. The retreat from cryptocurrency exposure coincided with a dramatic geopolitical pivot by former President Donald Trump regarding Greenland, underscoring Bitcoin’s current trading behavior as a volatile, risk-on asset rather than the stable ‘digital gold’ some proponents envision. This episode highlights how traditional market sensitivities and geopolitical headlines continue to dictate short-term crypto market movements.
about Crypto ETFs Bleed $996M as Trump Greenland Shift Sparks Risk-Off MovedYdX 2025 Report: $1.6T Volume, 98K Holders & Market Recovery
The dYdX Foundation’s January 2026 analyst call, featuring insights from liquidity provider Wintermute, revealed a year of significant transition and recovery for the decentralized derivatives protocol. Data from the 2025 Annual Ecosystem Report shows a resilient rebound in trading activity, with cumulative volume reaching $1.6 trillion and a substantial expansion in token holder participation, pointing toward a more mature and sustainable market structure.
about dYdX 2025 Report: $1.6T Volume, 98K Holders & Market RecoveryAltcoin Rallies Shorten as Capital Flows to Bitcoin & Ethereum
The cryptocurrency market witnessed a dramatic shift in 2025, with altcoin rallies collapsing from roughly 60-day runs to fleeting bursts averaging just 19–20 days. According to Wintermute’s 2025 Digital Asset OTC Markets report, this steep decline was driven by tightening market flows and a rapid rotation of capital back into the deep liquidity of Bitcoin and Ethereum. A sharp deleveraging event in October accelerated this trend, fundamentally altering trader behavior and market momentum.
about Altcoin Rallies Shorten as Capital Flows to Bitcoin & EthereumAave Governance Clash Wipes $500M, Whales Buy Dip
A public power struggle between Aave’s decentralized autonomous organization and its core development team erased half a billion dollars from the protocol’s market value in December 2025. The conflict over control of key revenue streams and brand assets became a critical stress test for decentralized governance. However, on-chain data reveals large investors viewed the panic as a buying opportunity, leading to cautious optimism in early 2026.
about Aave Governance Clash Wipes $500M, Whales Buy DipBitcoin’s $90K Volatility Sparks Market Manipulation Debate
Bitcoin’s dramatic surge past $90,000 followed by an immediate reversal has traders accusing major players of market manipulation. On-chain data reveals suspicious patterns while exchanges show repeated V-shaped price movements throughout December. The thin holiday liquidity appears to have created perfect conditions for stop-hunting strategies.
about Bitcoin's $90K Volatility Sparks Market Manipulation DebateWintermute Opposes Aave Token Plan Amid Governance Rift
The governance crisis at decentralized finance leader Aave has intensified as Wintermute, a major market maker and AAVE tokenholder, announced it will vote against the platform’s contentious token alignment proposal. CEO Evgeny Gaevoy’s public criticism highlights deep fractures within the Aave DAO over value accrual, control of brand assets, and the very relationship between Aave Labs and its tokenholders. With voting data showing the proposal overwhelmingly opposed, this governance clash threatens to overshadow Aave’s ambitious technical roadmap even as the protocol prepares for significant scaling.
about Wintermute Opposes Aave Token Plan Amid Governance RiftCrypto Volatility Persists: $600M Liquidations Shake Year-End Markets
As 2025 draws to a close, cryptocurrency markets are defying typical holiday calm with persistent, violent volatility. Hundreds of millions in daily liquidations, including a $600 million flush on a single Monday, reveal a fragile market structure where sharp price swings are the norm. According to analysis from market maker Wintermute, this turbulence stems from a market still scarred by October’s historic crash, now characterized by thin liquidity, derivatives-driven price discovery, and a stark narrowing of investor interest solely to Bitcoin and Ethereum.
about Crypto Volatility Persists: $600M Liquidations Shake Year-End MarketsCrypto Sell-Off Defies Bullish Macro Trends, Puzzles Experts
The cryptocurrency market opened December with a sharp decline, dragging Bitcoin below $84,000 and total market value under $3 trillion. This drop baffles analysts as it coincides with record highs in traditional equities and gold, creating a puzzling divergence from favorable macroeconomic conditions.
about Crypto Sell-Off Defies Bullish Macro Trends, Puzzles ExpertsBitcoin Surges Past $90K, Triggers $157M Short Liquidations
Bitcoin has reclaimed the $90,000 level with a powerful 6.7% surge, triggering over $157 million in short liquidations and lifting the broader crypto market. The rally saw Ethereum breach $3,000 and XRP jump 7.3%, while crypto ETFs attracted over $1 billion in inflows last week. However, analysts warn that market sentiment remains fragile, with all eyes on the Federal Reserve’s upcoming December meeting for direction.
about Bitcoin Surges Past $90K, Triggers $157M Short LiquidationsBitcoin Options Bet $118K Cap by 2025, No Moonshot
A sophisticated $2 billion options strategy is positioning for Bitcoin to reach $118,000 by December 2025, but no higher, signaling that professional traders expect a measured rally rather than explosive growth. Market analysts from Wintermute, GreeksLive, and Derive warn that key bottoming signals remain unmet, with elevated implied volatility and negative skew indicating persistent uncertainty despite recent price stabilization around $87,400.
about Bitcoin Options Bet $118K Cap by 2025, No Moonshot