Bitcoin Breakout Above $87,000 Paves Way for Altcoin Rally
Despite uncertainty surrounding the Clarity Act and the Federal Reserve's interest rate decision, the cryptocurrency market experienced a significant surge last week. Bitcoin (BTC) broke above $87,000 for the first time since January, while Ethereum (ETH) climbed above $2,700.
The rise in prices was not solely due to short positions being closed in the futures market, according to Wintermute. The company noted that fund flows into spot Bitcoin ETFs in the US also supported the recovery. Despite a total outflow of $746 million on Tuesday and Wednesday, net inflows of $159.5 million were recorded on Thursday and $433 million on Friday, reducing the total weekly net outflow to approximately $6 million.
Wintermute expects the market to establish new price levels and absorb profit-taking after a breakout above the current range in Bitcoin and Ethereum. The company stated that in the short term, the focus may be on Bitcoin, Ethereum, Solana (SOL), and Hyperliquid (HYPE). If a new bull run occurs in Bitcoin, capital could then flow into small and medium-sized altcoins.