Crypto Sell Side Liquidity Drying Up, Caution Advised Against Overleveraging

Wintermute warns of drying sell-side liquidity and advises against overleveraging for bullish reversals, citing record OTC spot trading share.

Woofun AI reports that Wintermute highlighted the Federal Reserve's decision to maintain the federal funds rate, which aided U.S. equity stabilization following forced sell-offs. The firm noted that while major cryptocurrencies retraced less than 4%, indicating nearing exhaustion of selling pressure, investors should avoid heavy leverage in anticipation of strong rebounds. Institutional OTC spot trading has reached a record 72% share, consolidating liquidity into mainstream assets.