Wintermute "Bitcoin (BTC), It's a Relief Rally Now"...'Cold Water' on a Market Awaiting a Bull Run

▲ Bitcoin (BTC)

Bitcoin (BTC) surged approximately 6% in a week, surpassing $64,500 for the first time in two weeks. However, market maker Wintermute drew a line, calling it a "typical relief rally." While funds have flowed back into Bitcoin spot ETFs, Wintermute warns that continuous inflows are needed to consider it a trend reversal.

According to crypto media outlet Decrypt on July 7 (local time), Bitcoin rose about 6% over the past week. On Monday, it topped $64,500, marking its highest level in two weeks. However, it is still about 50% below its all-time high of $126,080 recorded last October.

Wintermute stated, "It looks like a typical relief rally, and it's a perfectly understandable move given the current market environment." They analyzed that easing macroeconomic conditions, the dovish stance of the U.S. Federal Reserve, and positive news surrounding Ethereum (ETH) and institutional adoption led to the rebound.

Wintermute emphasized, "These three factors alone are sufficient to explain this rebound without drawing in a larger narrative." While acknowledging the potential for further upside for Bitcoin, they did not view the recent movement as a fundamental change in market structure.

Bitcoin spot ETFs broke a 10-consecutive-day net outflow streak, attracting over $222 million on July 2. On Monday, more than $265 million in net inflows were recorded. Wintermute stated, "To judge this as the start of a real reversal, we need to see sustained inflows over multiple trading days."

Wintermute assessed, "Until broader capital flows truly turn around, it's interpreted as a relief rally rather than a structural change." Their stance is that a genuine shift in the Bitcoin market's direction can only be determined once ETF fund inflows show continuity.

[Article Key Summary]

-Bitcoin surged approximately 6% in a week, surpassing $64,500 for the first time in two weeks.

-Wintermute assessed the recent rise as a "typical relief rally," drawing a line between it and a fundamental change in market structure.

-Bitcoin spot ETFs saw net inflows of over $222 million on July 2 and over $265 million on Monday, but Wintermute stated that continuous fund inflows need to be confirmed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*