New data from Wintermute’s over-the-counter (OTC) desk for 2025 indicates a pronounced shift in crypto liquidity, concentrating overwhelmingly in Bitcoin (BTC) and Ethereum (ETH). This trend signals a notable change from previous cycles, where broader altcoin rallies often saw significant capital inflows, now showing signs of fading momentum.
This concentration suggests a maturing market where institutional investors and large-scale traders prioritize established assets for deeper liquidity and perceived stability. The shift reflects a cautious sentiment, with capital gravitating towards less volatile options amidst a complex global economic landscape.
Historically, altcoins have offered higher risk-reward opportunities, but 2025’s trading patterns, as observed by major OTC desks, highlight a strategic retreat to foundational cryptocurrencies. This repositioning underscores a market re-evaluation of risk appetite among significant players.
The institutional pivot towards BTC and ETH
Wintermute’s internal OTC data, as reported by The Block in early 2026, reveals that a substantial majority of large-volume trades in 2025 were executed in BTC and ETH. This dominance points to institutional preference for assets with robust infrastructure and regulatory clarity, offering greater confidence for significant capital deployment.
According to a recent report by CoinDesk, institutional inflows into Bitcoin and Ethereum-based products surged by 45% in the latter half of 2025, even as overall market sentiment remained mixed. This aligns with Wintermute’s observations, reinforcing the narrative of a flight to quality within the digital asset space.
The rationale extends beyond mere market capitalization. Both BTC and ETH possess unparalleled network effects, extensive developer communities, and proven track records through multiple market cycles. These attributes make them attractive anchors for large portfolios, especially when broader market conditions are uncertain.
Altcoin challenges and shifting market dynamics
While Bitcoin and Ethereum solidified their positions, many altcoin projects struggled to maintain momentum throughout 2025. Wintermute’s data indicates a noticeable decrease in liquidity for a wide array of smaller cap tokens, making large block trades more challenging and increasing slippage for institutional players.
This fading altcoin rally can be attributed to several factors, including increased scrutiny from regulators, a cooling of speculative fervor, and a more discerning approach from investors focusing on utility and sustainable tokenomics. The euphoria of earlier bull runs appears to have given way to a more pragmatic evaluation.
For instance, decentralized finance (DeFi) protocols, while still innovative, saw their liquidity pools for many secondary tokens diminish. This made it harder for institutional entities to enter or exit positions without significant price impact, pushing them towards the deeper pools of BTC and ETH. Decrypt’s analysis corroborates this trend, noting a 20% decline in average daily trading volume for top 50 altcoins in Q4 2025.
The 2025 Wintermute OTC data offers a critical insight into the evolving crypto market, highlighting a clear bifurcation of liquidity. As institutional participation grows, the emphasis on robust, liquid, and well-established assets like Bitcoin and Ethereum is likely to persist, shaping future investment strategies and potentially altering the landscape for emerging altcoins. The challenge for new projects will be to demonstrate sustained value and deep liquidity to attract significant capital in this more selective environment.
