Wintermute: The market is consolidating in a volatile yet resilient range, with crypto activity narrowing down to BTC and ETH

Wintermute posted on the X platform that, amid a normalization of broader macro risk tolerance, the market is consolidating within a more resilient range but is experiencing volatility. Crypto activity is narrowing down to BTC and ETH, with retail and institutional fund flows showing a positive tilt, and leverage levels are 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 fluctuating within a range over the past two weeks. In the crypto space, this translates to a digestion period rather than a trend formation period. BTC has rebounded to around $92,000, and the total market capitalization of the crypto market has bounced back to about $3.25 trillion.

Last Friday, BTC experienced an intraday drop of about $4,000, triggered by a chain liquidation that liquidated approximately $2 billion within an hour. The weakening momentum of Nasdaq is driving funds towards quality assets, leading to a rotation of funds into mainstream coins, with both BTC and ETH receiving 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, with the current basis compression indicating limited directional leverage exposure.