Wintermute report indicates liquidity concentrated in BTC and ETH in 2025.

• Cryptocurrency liquidity shifts to BTC and ETH.
• Altcoins tend to have shorter and more selective rallies.
• Institutions prioritize ETFs and large tokens.

Cryptocurrency liquidity in 2025 is expected to become more intensely concentrated in Bitcoin and Ether, along with a select group of large-cap tokens. This is according to a recent report by Wintermute, which identifies a significant shift from previous cycles, when altcoin rallies spread across larger segments of the market.

According to the analysis, capital flows have ceased to circulate widely, resulting in shorter and more selective movements among altcoins. The average duration of a thematic rally in this segment fell to 19 days in the last year, a significant decrease compared to the 61 days observed in 2024. This data reinforces the interpretation that the market has begun to prioritize efficiency and immediate liquidity.

The report also highlights that the weakening of memecoin cycles in early 2025 contributed to reduced capital formation outside of major tokens. With less appetite for diversified bets, investors began directing resources towards assets with greater market depth and lower operational risk.

Among institutional participants, the observed approach is increasingly tactical. Instead of long, directional seasonal cycles, strategies have shifted to responding to specific events, with more careful and recurring execution. This behavior has favored assets with greater liquidity, where entry and exit of positions occur with less impact on prices.

Large counterparties have been using structured channels, such as exchange-traded funds (ETFs) and treasury firms focused on digital assets, to allocate capital primarily to BTC, ETH, and a few other relevant tokens. This movement contributes to concentrating liquidity and limits rotation into smaller assets, which are more dependent on retail investors to gain traction.

In the derivatives market, Wintermute observed growth in the use of contracts for difference (CFDs) and options strategies. The trend points towards more systematic approaches, focusing on income generation and active risk management, rather than prolonged directional bets.

According to the company, liquidity channels have become central to market dynamics. Factors such as execution quality, settlement security, and access to regulated instruments directly influence institutional behavior.

Looking ahead to 2026, Wintermute assesses that the performance of cryptocurrencies will depend on whether liquidity remains restricted to the main assets or expands again. Significant movements in BTC and ETH prices, changes in corporate buyer mandates, or a more consistent return of retail investors could stimulate a broader rotation, although this scenario is seen as less likely in the short term.