Crypto markets endured sharp volatility last week before settling into a narrower trading range, according to a new market update from Wintermute, which noted that capital continues to consolidate around Bitcoin and Ethereum while altcoins remain under sustained pressure.
The firm said downside pressure intensified early in the week, with Bitcoin briefly falling below the $85,000 level and Ether slipping under $3,000. The selloff triggered a surge in liquidations, totaling roughly $600 million on Monday, followed by about $400 million each on Wednesday and Thursday.
Price action was described as highly choppy, with rebounds quickly sold into as leveraged positions were flushed out.
By the latter part of the week, market conditions calmed, with Bitcoin gradually grinding back toward the $90,000 mark.
As liquidity thinned heading into the holiday period, overall market structure narrowed further, reinforcing a trend that has defined much of the second half of the year: rising Bitcoin dominance and persistent underperformance across altcoins.
Wintermute highlighted that altcoins remain weighed down by heavy supply overhangs and an active token unlock schedule, which continues to pressure the long tail of the market.
Internal flow data showed renewed buying interest in major assets, particularly Bitcoin, with Ethereum also seeing increased accumulation as the year draws to a close.
Institutional participation has remained a steady source of demand since the summer, while retail investors are increasingly rotating out of altcoins and back into large-cap cryptocurrencies. According to the firm, this shift reflects a growing consensus that Bitcoin must lead before risk appetite can sustainably return to smaller assets.
Despite steady spot buying in Bitcoin and Ether, price discovery continues to be driven largely by derivatives markets.
This dynamic has allowed net inflows into major assets to coexist with sharp intraday drawdowns when crowded leverage is unwound. Options markets continue to price a wide range of outcomes, with elevated implied volatility and mixed expectations around near-term direction.
Looking ahead, Wintermute expects lighter activity and range-bound trading into year-end, noting that without a clear macro or policy catalyst, crypto markets are likely to remain driven by positioning rather than conviction.