Wintermute: Market consolidates within a volatile yet resilient range, crypto activity narrows to BTC and ETH

ChainCatcher news, Wintermute posted on X stating that as broader macro risk tolerance normalizes, the market is consolidating within a more resilient range despite volatility. Crypto activity is narrowing to BTC and ETH, with both retail and institutional capital flows showing a positive tilt and leverage remaining relatively low.

After two months dominated by macro uncertainty, the market is beginning to show greater tolerance for negative inputs. The market has entered a consolidation phase, with price action mostly ranging over the past two weeks. In the crypto sector, this translates into a digestion period rather than a trend-forming phase. BTC has rebounded to around $92,000, and the total crypto market capitalization has bounced back to approximately $3.25 trillion.

Last Friday, BTC experienced an intraday plunge of about $4,000, triggered by a chain of liquidations that wiped out around $2 billion in just over an hour. Weakening momentum in Nasdaq is driving capital flows toward high-quality assets, sparking a rotation into major coins, with both BTC and ETH seeing inflows from retail and institutional investors.

Influenced by the Federal Reserve's decision on Wednesday and the Bank of Japan's meeting next week, the market is awaiting macro clarity. The current basis compression indicates limited directional leveraged exposure.