Recent market volatility saw Bitcoin and Ethereum experience significant price drops. However, a new analysis suggests this was driven more by global interest-rate shifts than crypto-specific weakness. Wintermute, a prominent cryptocurrency firm, argues that institutional investors were primarily responsible for triggering these losses, targeting liquid assets first in anticipation of changing macroeconomic conditions. The firm claims these sell-offs were merely market reaction to evolving interest rate expectations, mirroring familiar patterns observed in equities and bonds during significant market shifts. Wintermute’s observations indicate that the selling pressure wasn’t concentrated in specific time zones but rather originated in the U.S. markets. This suggests a more macro-driven factor contributing to these price changes, as opposed to crypto-specific causes. The firm also highlights altcoin resilience during this period, demonstrating a distinct decoupling from Bitcoin and Ethereum’s substantial decline. These observations suggest capital didn’t abandon the crypto market entirely; rather it simply shifted its holdings as liquidity adjusted in anticipation of shifting interest rate expectations. This shift is believed to have been triggered by fast-paced adjustments in monetary conditions, particularly after the U.S. Federal Reserve significantly reduced its odds of a December rate cut. This, according to Wintermute, resulted in an amplified price reaction in the crypto market compared to traditional stock markets. However, despite this volatility, Wintermute argues that the overall market direction remains consistent. The market hasn’t lost faith in cryptocurrency. Instead, it was simply reacting to rapidly changing economic expectations. The analysis suggests a greater macro-economic driver rather than a reflection of underlying crypto weakness. It’s important to note that the information provided here is for educational purposes only and should not be interpreted as financial advice. Consult with a qualified financial advisor before making any investment decisions.**