Crypto markets are grappling with dwindling liquidity, as new capital inflows have slowed down despite overall asset growth. Wintermute, a prominent cryptocurrency trading firm, observed a notable decrease in market flow, highlighting the impact on price movements and overall market sentiment. Bitcoin and Ethereum prices have taken a hit, falling below their recent highs while altcoins remain under pressure. The report attributes this to a shift in capital allocation within existing asset classes rather than fresh investment. While stablecoin values, ETF investments, and Digital Asset Treasuries have surged in the past year, new money is not readily entering the market, leading to subdued rallies and limited market gains. Analysts are now closely watching for signs of renewed liquidity. A comparison to the 2019 period when the US Fed paused quantitative tightening, resulting in a significant drop in altcoins before a subsequent recovery, provides an indication of how crucial fresh funds are for crypto markets to regain momentum. The Fear and Greed Index remains at a neutral level, reflecting cautious investor sentiment.