Wintermute says three catalysts could broaden crypto liquidity in 2026

Beincrypto reports market-maker Wintermute found crypto liquidity in 2025 became concentrated in Bitcoin, Ethereum and a small group of large-cap tokens, and the firm outlined three developments that could prompt a broader market recovery in 2026. The firm said traditional cycle-driven rotation — from BTC to ETH to large- and then smaller-cap altcoins — did not occur in 2025, leaving liquidity top-heavy.

Wintermute wrote that "capital no longer spreads broadly across the market," and attributed the shift in part to exchange-traded funds (ETFs) and digital asset treasuries (DATs) that are changing how capital is funnelled into the ecosystem. The report also noted altcoin rally durations fell from typical 45–60 day runs in 2022–24 to a median of about 20 days in 2025, and that the aggregate meme coin market cap dropped sharply after the first quarter and failed to regain key support levels, despite brief localised bursts such as the Pump.fun versus LetsBonk activity in July.

Wintermute said a broader recovery in 2026 would likely require at least one of three catalysts: expansion of institutional investable universes via ETFs and DATs, renewed strong rallies in Bitcoin or Ethereum that could create a wealth effect, or a return of retail investor attention (which the firm views as the least likely).

Key Topics

Crypto, Wintermute, Bitcoin, Ethereum, Etfs, Digital Asset Treasuries