Wintermute's latest market report highlights the impact of the U.S. Federal Reserve's hawkish pivot on cryptocurrency markets. The Fed maintained its interest rate at 3.50%–3.75% but signaled a tighter policy stance, with inflation risks perceived as rising. This shift increased the likelihood of a December rate hike to 77%, up from 24% a month ago. Crypto markets reacted swiftly, with Bitcoin peaking near $67,000 before falling to around $62,000, marking a 3.8% weekly decline. Ethereum also dropped below $2,000, settling in the mid-$1,700 range, down 1.2% for the week. Over the weekend, $600 million in long positions were liquidated, underscoring a leverage imbalance. Despite some BTC purchases, demand from ETFs and strategic players has weakened, with markets stabilizing under low leverage and light positioning.