Key Highlights
- Bitcoin and Ethereum stayed steady in a tight range, while altcoins like XRP and SOL saw selective buying and rotation gains.
- ETF inflows reversed, pulling $1B+ from crypto, but healthy volumes show traders booked profits, not long-term holders selling out.
- Institutional moves and upcoming CPI/CLARITY catalysts suggest crypto is consolidating, setting the stage for a potential breakout.
Crypto markets are struggling to rise as risk-on flows reversed, pushing Bitcoin (BTC) and Ethereum (ETH) slightly lower. The ETF inflows started the week strongly, but have now seen a sudden turn, with more than $1 billion being drawn out. On the other hand, attention was drawn to altcoins such as XRP, Solana (SOL), and mid-cap coins.
According to Wintermute, a leading market maker, crypto underperformed broader markets, though small caps and altcoins showed selective strength. The market maker notes that BTC started the week by briefly surging to $94.7k early but dropped below $90k mid-week to stabilize around $91k. ETH replicated the performance, surging to $3,220 but dipping to $3,080 by the end of the week.
Wintermute also pointed out that since late November, BTC has been oscillating between $89k and $95k. This tight trading range is important because periods like this often come before big price moves and potential gains.
Over the past 30 days, Bitcoin has been trading in a very narrow range—narrower than 91% of past periods. This shows the market is steady and not in a panic. Basically, risky positions have been cleared, and there haven’t been any forced sell-offs, which means the overall market structure is healthy.
ETF flows drive short-term volatility
ETF activity drove the market last week. Big inflows of $471 million and $697 million on January 2 and 5 quickly reversed, with over $1.1 billion pulled out by Thursday. Ethereum alone saw $260 million leave. However, Wintermute noted that trading volumes stayed strong, showing that short-term traders were simply taking profits rather than long-term holders selling out.
Interestingly, some altcoins saw buying interest. XRP, SOL, and DOGE ETFs pulled in about $100 million combined. In the spot market, XRP jumped more than 10%, while SOL gained a little. As a result, Bitcoin’s share in the total crypto market fell below 59%, showing that money was moving into altcoins.
Market structure remains intact
Besides ETF activity, bigger structural moves are supporting crypto consolidation. Morgan Stanley filed for BTC and SOL ETFs, showing long-term investment plans. Bank of America added more advisor recommendations, while regulators keep an eye on Solana staking.
Wintermute said these big institutional moves show long-term planning, not short-term trading. The market is also watching key events like the U.S. CPI report, expected at 2.7%, and the Senate vote on the CLARITY Act. Either could trigger the breakout crypto has been waiting for.
Rumors and FUD addressed
Wintermute’s update comes after social media rumors suggested the firm planned to sue Binance after the October 2025 crash. CEO Evgeny Gaevoy dismissed the claims, saying, “What a larp, all complete bullshit.”
Former Binance CEO Changpeng Zhao also warned followers to “trust only verified information.” While the rumors caused some short-term worry, they didn’t affect the market’s structure or trading flows.
As of writing, BTC was trading near $91,934 with a $1.84 trillion market cap, while ETH was hovering around $3,124 at $377 billion—according to CoinMarketCap data. XRP, SOL, and BNB highlight the selective altcoin rotation. In general, the market is exhibiting patient capital building, strong volumes, and tactical profit-taking.
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