New liquidity into the cryptocurrency ecosystem has slowed significantly, with capital shifting between tokens rather than entering from external sources. Trading firm Wintermute describes the market as operating in a 'self-funded mode' amid outflows from U.S. spot ETFs and reduced demand from digital asset treasuries. This occurs despite rising M2 money supply in major economies driven by fiscal spending.
Bitcoin traded around $101,279.63 on November 6, 2025, struggling to build on its recovery from below $100,000 the previous day. The CoinDesk 20 Index rose 2% over 24 hours, boosted by 18% gains in ZEC, ICP, and QNT, but the broader market showed signs of strain due to vanishing new inflows.
Wintermute noted that liquidity is merely rotating among tokens without fresh capital, labeling it a 'self-funded mode.' Inflows have declined for months through stablecoins, ETFs, and digital asset treasuries (DATs). U.S.-listed spot Bitcoin ETFs saw cumulative outflows exceeding $1.5 billion in under two weeks, while DAT firm demand fell sharply from third-quarter highs.
This liquidity crunch persists even as M2 money supply grows in major countries, fueled by fiscal spending to spur a global capital expenditure cycle in AI, infrastructure, and domestic demand. Wintermute suggested that renewed inflows might arrive soon, with the Federal Reserve 'easing into a bubble,' as investor Ray Dalio posted on X, describing it as inflationary. Such conditions could bolster demand for bitcoin as a gold-like asset, alongside altcoins tied to AI or fiscal stimulus beneficiaries.
Traders are monitoring bitcoin's 50-week simple moving average as key support since early 2023; a rebound could signal new highs. Meanwhile, spot Bitcoin ETFs recorded daily net outflows of $137 million, with cumulative flows at $60.26 billion and holdings near 1.34 million BTC. Ether ETFs saw $118.5 million in daily outflows, with cumulative flows at $13.91 billion and 6.61 million ETH held.