Wintermute: Liquidity drives cryptocurrency cycles, but inflows have now stopped.

Wintermute posted on the X platform: "Liquidity drives the cryptocurrency cycle, but inflows have now stopped. Since the beginning of 2024, the size of stablecoins, ETFs, and the digital asset treasury has increased from $180 billion to $560 billion, but the growth momentum has slowed. Funds are rotating internally rather than entering new markets, which has led to a rapid decline in gains and a continued narrowing of market breadth. When any of these three channels of inflows accelerates again, liquidity will flow back into the digital asset space. Until then, cryptocurrencies will remain in a self-funding phase."