[Wintermute: Crypto Market Liquidity May Improve in Q1 2026] Crypto market maker Wintermute analyzed that last week's decline in the crypto market was primarily due to the repricing of expectations for a Federal Reserve rate cut in December, rather than issues with market fundamentals. Bitcoin needs to re-enter its range to improve market sentiment. Some of the pressure comes from large holders reducing their positions, with the seasonal selling trend from Q4 to Q1 occurring earlier this year, influenced by expectations of the four-year cycle. The global macro environment remains in a loose cycle, with Japan planning to launch a $110 billion stimulus package, China continuing to implement easing policies, and the U.S. quantitative tightening program set to end next month. Wintermute expects liquidity to improve in the first quarter of 2026, with future market catalysts likely to come from policy and interest rate expectations rather than internal liquidity within the crypto industry.