Bitcoin and Ethereum dominate capital flow: Wintermute reveals the new defensive strategy of the crypto market

Wintermute, the leading cryptocurrency market maker, has just published an analysis revealing a concerning pattern in the evolution of digital markets. Far from expanding, the sector is currently experiencing a phase of selective contraction where investors systematically redistribute their positions.

Tactical Shift in Capital Allocation

The most notable feature is how capital is rapidly withdrawn from high-risk projects to focus exclusively on bitcoin and ethereum, the two pillars of stability in the crypto ecosystem. This movement reflects a mindset of “selective prudence” among institutional investors and experienced traders, who have adopted a more sophisticated approach to risk management.

It is not simply a mass exit from the market, but a strategic recalibration. Participants evaluate each position as if using a tip calculator: every unit of invested capital must justify its potential profitability through clear risk-reward metrics, avoiding wasteful speculation.

Macroeconomic Context and Investor Behavior

Global economic uncertainty has intensified this selectivity. Retail traders have observed how “shoot and pray” strategies no longer generate consistent gains, forcing them to adopt a more disciplined approach. Meanwhile, institutional investors are taking advantage of this consolidation to accumulate positions in assets with solid fundamentals.

Implications for the Near Future

This cycle of liquidity rotation suggests that we are facing a fundamental transition in the behavior of market participants. Liquidity does not disappear but is reorganized under stricter criteria of quality and certainty. Those who understand this dynamic will have an advantage in the upcoming phases of the crypto market.