Wintermute: Crypto Assets continue to underperform traditional assets, and the traditional four-year cycle concept has become ineffective.

Golden Finance reported that the crypto asset market maker Wintermute stated that despite the macro environment remaining supportive, including interest rate cuts, the end of quantitative tightening, and the stock market approaching its peak, crypto assets continue to lag behind other asset classes. The article points out that global liquidity is expanding, but funds are not flowing into the Crypto Assets market. Among the three main drivers of capital inflow that boosted performance in the first half of this year, only the supply of stablecoins has continued to grow (increasing by 50% this year, adding 100 billion dollars), while ETF capital inflows have stagnated since the summer, with BTC ETF assets under management hovering around 150 billion dollars, and digital asset trading (DAT) activity has also dried up. In terms of altcoins, the gaming sector fell by 21% weekly, layer 2 networks dropped by 19%, and Meme coins decreased by 18%. Only the AI and DePIN sectors performed relatively well. Wintermute believes that the four-year cycle concept is no longer applicable to mature markets, and liquidity is the key factor driving performance currently. They will closely monitor ETF capital inflows and DAT activities, which will be important signals for the return of liquidity to the Crypto Assets market.