Wintermute, a leading crypto market-maker, has issued a stark warning: fresh capital is no longer entering the crypto market in significant amounts. According to their latest insights, the flow of new money from investors has slowed, and the industry is now being sustained by “recycled liquidity” rather than fresh funds.
This statement comes at a time when market participants are hoping for a new bullish cycle, but the lack of outside money may be holding that back.
Stablecoin and ETF Inflows Flatline
Wintermute specifically points to a sharp decline in inflows into stablecoins, exchange-traded funds (ETFs), and digital asset token (DAT) funds. These three sources typically signal rising investor interest. When their inflows slow down or level off, it often reflects a lack of enthusiasm or confidence from retail and institutional investors alike.
This flatlining trend raises concern about crypto’s near-term momentum, especially given how important new capital is for driving rallies, especially in altcoins and emerging DeFi projects.
AERT: Market-maker Wintermute warns fresh capital has dried up. Stablecoin, ETF and DAT inflows have leveled off.
— Cointelegraph (@Cointelegraph) November 6, 2025
"Crypto now relies on recycled liquidity rather than new money." pic.twitter.com/PXJB7nRKEP
What Recycled Liquidity Means for Crypto
With fewer new dollars entering the space, crypto trading activity is increasingly powered by capital already within the system. This recycled liquidity creates a risk of exaggerated market movements. While prices might still move up or down, the underlying strength of these moves may not be supported by real investor demand.
Wintermute’s alert serves as a caution for traders and builders alike: without fresh capital, the ecosystem’s growth could be limited. Until inflows into stablecoins and ETFs pick back up, crypto markets might remain range-bound or even see downward pressure.