"Reorganization centered on Bitcoin and Ethereum amid year-end liquidity contraction… Altcoin weakness persists"

As the year-end market closure period began, analysis suggested that the crypto asset market is continuing a high-volatility trading range. In an environment of thinner liquidity, leverage is being rapidly unwound, and capital is clearly being re-concentrated into major assets such as Bitcoin (BTC) and Ethereum (ETH).

On the 23rd, crypto asset (cryptocurrency) market-making firm Wintermute said on X (formerly Twitter), "As the year-end approaches, market structure is narrowing further," and added, "Bitcoin dominance (market share) is rising again, while altcoins are showing weak performance due to supply pressure and constrained risk appetite."

Earlier last week, Bitcoin fell below 85,000 dollars, and Ethereum dipped below the 3,000-dollar level. Afterwards, as selling pressure was quickly unwound, Bitcoin showed a gradual recovery back toward around 90,000 dollars.

From the standpoint of capital flows, it was emphasized that buying interest in major assets is being maintained. Bitcoin is seeing relatively stable buying interest, and toward the year-end institutional-led buying inflows are being observed in Ethereum. Meanwhile, individual investors appear to be reducing their allocation to altcoins and moving funds into major assets.

Wintermute said, "In the spot market, major assets are supporting price floors, but short-term price formation is still taking place in the derivatives market," adding, "Until the year-end, limited fluctuations due to position adjustments are more likely than a clear directional move."