Cryptocurrency Market Enters Macro Paradigm Shift Phase

The cryptocurrency market is experiencing a significant shift in its dynamics, according to Wintermute Trader. The market has been driven by micro-factors such as tariffs, Fed officials' speeches, and earnings reports. However, this framework is breaking down, and the market is now being driven by slower, more complex forces.

The introduction of AI-driven revaluation and deglobalization is changing the way assets are priced. The market is experiencing a transition from a growth-driven economy to a value-driven one. This shift is having a significant impact on asset prices, with growth stocks and digital assets experiencing declining values.

The current market environment is characterized by a lack of direction and a decrease in investor confidence. The absence of a clear direction is evident in the price movements of major cryptocurrencies such as Bitcoin and Ethereum. The lack of institutional demand and the increase in short positions are also contributing to the market's volatility.