Crypto Markets Show Signs of Recovery
Crypto markets are gaining strength in November, according to Wintermute, a leading crypto trading firm. The firm points to cleaner positioning and rising liquidity as the foundation for this recovery.
Wintermute highlighted that softer U.S. inflation data and improving U.S.–China relations have boosted risk appetite globally. These factors have helped revive optimism among investors.
Bitcoin Hits $115,000 Amid Strong Demand
Bitcoin recently recovered to $115,000 following strong ETF inflows and a sharp short squeeze. This rebound signals renewed investor confidence after weeks of volatility caused by global uncertainties and interest rate worries.
Wintermute reported a 5.3% weekly rise in Bitcoin’s price, supported by the liquidation of $160 million in shorts. Ethereum’s price also approached $4,200, while gold fell by 7% as investors shifted from defensive assets into crypto and equities.
Wider Sector Rotation and Growing Market Confidence
Investors have also favored DeFi and AI-related tokens. Wintermute noted that these sectors showed stronger earnings and increased network activity. Utility and infrastructure tokens gained interest, helped by Layer-2 launches and restaking projects attracting new liquidity.
Funding rates turned positive across key perpetual markets, indicating sidelined capital is returning. Additionally, stablecoin supply increased for the first time since September, signaling fresh inflows. ETF flows remained steady, supporting structural demand for Bitcoin and a healthier derivatives market.
Two weeks earlier, Wintermute paused trading during a flash crash that wiped out $19 billion from the crypto market. The firm stated that trading was halted because internal risk controls were breached.
Wintermute’s CEO, Evgeny Gaevoy, dismissed rumors of company trouble. He confirmed the firm is operating normally and remains stable.
With macroeconomic headwinds easing, factors like cooling inflation, improved diplomatic ties, and expectations of a Federal Reserve pivot are boosting optimism. Wintermute sees a constructive setup for crypto heading into November and the fourth quarter, supported by cleaner leverage and calmer volatility.
