Wintermute reports reduced leverage in crypto markets but warns of weaker demand from major buyers, limiting upside potential.
Leverage in the crypto market has largely been cleared, reducing systemic risk after recent volatility. The move follows a period of forced liquidations and deleveraging among traders, easing concerns over cascading sell-offs.
Demand from institutional buyers, including Bitcoin ETFs and corporate treasuries, has softened compared to earlier phases. While accumulation continues, the pace has slowed, suggesting limited near-term upside. Analysts note that structural flows remain weak, favoring range-bound trading over a sustained rally.
A potential rebound could emerge from softer U.S. inflation data or easing geopolitical tensions, though such moves are expected to be short-lived rather than signaling a market bottom.