Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are underperforming not just equities but even altcoins — an unusual dynamic that reflects a market trading almost entirely on macro signals rather than crypto-native fundamentals.

What Happened: New research from Wintermute shows the latest crypto selloff wasn’t sparked by structural weakness. Instead, it was a macro-driven flush, triggered by a rapid repricing of December rate-cut expectations.

After Fed Chair Jerome Powell walked back earlier dovish comments, odds of a December cut collapsed from ~70% to ~42% in a single week. U.S. risk assets slid, and highly levered crypto markets felt the sharpest impact.

Sector performance was broadly negative:

• GMCI-30 Index: ~12%
• AI, DePIN, Gaming, Meme sectors: ~14%–18%

Wintermute noted that while positioning has reset and the macro backdrop remains constructive, sentiment won’t turn until Bitcoin can reclaim the top of its range.

With crypto moving in lockstep with macro policy expectations, the next catalyst will likely come from monetary policy, not within crypto itself.

Once majors stabilize, broader market recovery should follow.

Also Read: Bitcoin Briefly Crashes Below $90,000 As Ethereum, XRP, Dogecoin Drop Causes $1B In Liquidations

Why It Matters: Bitcoin’s decisive break below $100,000, its first since May, came after repeated failed defenses and persistent U.S.-session selling.

Whale trimming contributed, a typical Q4/Q1 phenomenon, though the pace accelerated this cycle on expectations of weaker flows ahead.

Crucially, the selloff lacked any fundamental trigger.

The move was macroeconomic, not crypto-native.

The macro backdrop remains supportive: Japan launching a $110 billion stimulus, China continuing monetary easing, U.S. quantitative tightening ending next month and new fiscal channels, including proposed $2,000 U.S. stimulus checks, are still in play.

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