Market maker Wintermute has issued a warning regarding Ethereum, labeling it as "not the right asset for this macro" environment. This caution comes after Ethereum's price dropped 10.2% this week, with the ETH/BTC ratio nearing 0.0275. Wintermute attributes this bearish outlook to rising Treasury yields and inflation concerns, which are driving investors towards hard assets and away from long-duration tech investments like Ethereum. Wintermute highlights that Ethereum's future growth relies heavily on fee growth from DeFi, real-world assets, and Layer 2 adoption. However, without a significant increase in on-chain usage, Ethereum's long-duration narrative is at risk, especially as discount rates rise. The firm also notes a choppy, range-bound market for Ethereum, with technical indicators showing limited optimism. Wintermute is also cautious about Bitcoin, suggesting that current macro conditions make it challenging for institutions to return to spot and ETF markets. The firm predicts a shift in the crypto market dynamics, driven by institutional capital flows and new product rails, rather than traditional cycles and protocol upgrades.