Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Analysts from Wintermute have indicated that the primary reason for the decline in activity within the cryptocurrency market is the capital rotation of investors withdrawing funds from technology stocks, which has also impacted digital currencies.
Experts believe that the cryptocurrency market has entered a phase of calm and is in search of a new equilibrium price following a cascade of liquidations of trading positions from two weeks ago.
“Investors are taking profits from the overheated technology sector and reallocating them to industrial sectors. This is due to the rapidly decreasing costs of implementing AI technologies, while the risks of disrupting existing business models are increasing. This shift has directly affected cryptocurrencies, which occupy the most speculative position in the investment spectrum,” the analysts explained.
Related Posts
Wintermute anticipates that a recovery in the cryptocurrency market may only occur in the latter half of 2026. Achieving this will require “economic clarity,” which is currently severely lacking for traders and investors. Many are opting for a wait-and-see strategy, securing some profits while maintaining core positions to capitalize on a potential market rebound. This approach aids in mitigating volatility and reduces the risk of mass panic selling, the experts noted.
Analysts have also observed a growing interest in stablecoins. These assets are gradually becoming “attraction points” for capital, generating local demand and increasing the likelihood of establishing a stable bottom that could serve as a foundation for the next wave of growth in the cryptocurrency market.
Previously, Galaxy Digital’s CEO Mike Novogratz stated that the market is transitioning from the “Humpty Dumpty Era” characterized by sharp price fluctuations to a more mature phase where the decisions of major players dictate cryptocurrency prices.
