Despite a supportive macroeconomic environment with rate cuts, the end of quantitative tightening, and record-high equity markets, crypto has underperformed. This is according to Wintermute’s 3 November 2025 report, which highlights declining ETF inflows, sluggish DAT activity, and a market struggling for renewed momentum despite solid structural foundations. The recent Federal Reserve rate cut and the end of quantitative tightening were expected to boost risk assets. However, markets wavered after Fed Chair Jerome Powell downplayed the possibility of another December rate cut, prompting traders to move away from risky positions. 2025’s initial performance has seen market volatility with Bitcoin and Ethereum trading flat near $107,000 and $3,700, respectively, while altcoins experienced losses across the board. The report emphasizes that the lack of capital flowing into digital assets is not caused by a shortage of liquidity but by its uneven distribution. Global liquidity is rising, with central banks easing their monetary policies in a rare occurrence that historically supports risk-on environments. Yet, unlike previous cycles, this new liquidity isn’t reaching crypto markets. Wintermute notes that ETF assets under management are stagnant, while DAT volumes have fallen sharply, suggesting less enthusiasm for these specific investment avenues. Retail investors are increasingly shifting their focus to equities and AI-powered technologies. Despite the market’s decline, Wintermute highlights a positive aspect: robust stability within the digital asset space. The report concludes that the next step toward growth hinges on renewed ETF and DAT activity, indicating that a new wave of inflow is needed to reignite momentum in the crypto market.