Liquidity Swells, Crypto Stalls as New Money Chases AI Stocks, Wintermute Says

Overview

• Most incremental liquidity has rotated to equities, AI names, and prediction markets, leaving digital assets sidelined, according to Wintermute’s Nov. 3 update.
• Bitcoin and Ether remain range‑bound after the Federal Reserve’s 25 basis point cut that was largely priced in, even as stocks rebounded more quickly.
• ETF demand has faded, with Bitcoin and Ethereum ETFs on a five‑day outflow streak and DAT activity slumping, Wintermute reports.
• Stablecoin supply has grown by more than $100 billion year to date, signaling idle capital, while Bitcoin ETF assets under management hover near $150 billion.
• Wintermute says market structure looks healthier with flushed leverage and subdued volatility, but a sustained recovery likely needs renewed ETF or DAT inflows.