Wintermute Sees Early Stage of New Bull Cycle in Bitcoin

Crypto market maker Wintermute believes that the current trend in Bitcoin is not the end of the rally, but rather a phase preparing for the next move. In its recent report, Wintermute pointed to mounting fatigue in the stock market as a backdrop to the move, with investors taking profits after a long-running artificial intelligence-related rally and moving their money into Bitcoin and Ethereum.

Wintermute noted that cryptocurrencies are rising not alongside stocks but amid stock weakness. The company cited strong U.S. jobs data recently weighing on broader financial markets, but cryptocurrencies showing more resilience than expected. Bitcoin slipped from $82,400 to below $80,000 at one point, but soon erased all of the drop and ended the week up 3.45 percent.

Wintermute said that institutional inflows are behind the shift in market dynamics. Major funds are no longer waiting for Bitcoin to fall to arbitrary levels such as $20,000, and are instead buying aggressively through spot ETFs. Nearly $1 billion flowed into these funds over the past three weeks, with last Thursday seeing the biggest inflow since January.