Market maker Wintermute reports a shift in market sentiment from anticipating rate cuts to considering rate hikes, as inflation pressures re-emerge. Bitcoin briefly surpassed $82,000, driven by momentum from Clarity Act developments, before retreating to approximately $78,000, marking a 5.7% decline over the week. Ethereum also saw a significant drop of 10.2%, with the ETH/BTC ratio falling to about 0.0275.
Wintermute attributes last week's Bitcoin surge more to leverage and short-covering rather than spot market confirmation. The firm identifies $76,000–$78,000 as critical near-term support levels and cautions that rising yields and accelerating inflation could challenge the sustainability of institutional interest in Bitcoin.
Bitcoin Retreats as Market Sentiment Shifts from Rate Cuts to Hikes
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