- Bitcoin and Ethereum drew major flows as traders sought clarity over speculation.
- Macro stability encouraged range-bound markets and selective risk-taking across assets.
- Central-bank events drove positioning, reducing interest in high-leverage altcoin trades.
Global crypto markets have entered a period of distinct compression, trading in a tight but resilient range as institutional flows retreat from speculative altcoins to concentrate in Bitcoin (BTC) and Ethereum (ETH).
According to a new market update from Wintermute, this shift represents a structural improvement in sentiment, as the asset class begins to “shrug off” negative news cycles that would have triggered sell-offs just weeks ago.
Related: Kevin O’Leary Declares Altcoins Are Dead, Calls Bitcoin and Ethereum the Only Survivors
This shift helped risk assets find firmer footing and encouraged selective flows into the largest digital assets. Besides, crypto markets showed tighter activity as interest moved toward Bitcoin and Ethereum. This concentration showed how traders preferred clarity over speculation during a period with limited conviction.
Macro Forces Shape a Narrower Risk Profile
Macro debates continued around the strength of global data, the outlook for central bank policy, and the durability of tech spending. These themes influenced risk-taking across asset classes. However, markets leaned toward consolidation rather than large directional moves. Price action stayed range-bound during the previous two weeks, and traders favored a slower tempo.
Bitcoin reclaimed the $92,000 area after a sharp decline last Friday. That swing erased almost $4,000 in minutes because cascading liquidations cleared more than $2 billion. Consequently, the event exposed the ongoing fragility in digital assets.
However, the market recovered without extended selling, and that strengthened confidence in near-term support. Crypto market capitalization moved near $3.25 trillion as inflows returned to majors.
Fading momentum in the Nasdaq encouraged a shift toward quality risk. Hence, traders preferred BTC and ETH as flows increased from retail and institutional accounts. Compressed basis across both assets suggested that traders avoided heavy leverage until macro clarity emerged. Additionally, high year-end implied volatility created a wide distribution of targets, with interest near $85,000 and $100,000.
Central Banks Guide Positioning Into Year-End
A busy central-bank calendar shaped direction this week. The Federal Reserve captured most attention ahead of Wednesday’s decision. Moreover, traders prepared for the Bank of Japan meeting the following week.
Delta-neutral strategies gained traction in selective lower-cap tokens because funding remained attractive. Consequently, interest in directional altcoin trades faded.
Related: ‘Only Two Matter Now’: Kevin O’Leary Says Bitcoin and Ethereum Dominate 97.5% of Crypto Gains
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