Wintermute: Ongoing conflict may suppress risk assets

Wintermute stated that as growth risk premiums rise and the Federal Reserve is unable to take action, cryptocurrencies, as high-beta growth assets, continue to face pressure. Although ETF fund outflows have temporarily paused, they still reflect short-term realities. Current headwinds include the disruptive impact of artificial intelligence, deglobalization, and interruptions in energy supply. If oil prices remain high and the Federal Reserve stays on hold, capital may continue to flow into hard assets, commodities, and value assets, making it difficult for cryptocurrencies to gain buying support. If the conflict lasts longer than expected, high energy costs could reshape interest rate expectations and broadly suppress risk assets.