Wintermute, whose analyses are closely followed in the market, evaluated the recent movements.
Cryptocurrency market maker Wintermute stated in his latest analysis that there is a relief rally in Bitcoin, but this is not a structural bull market.
Wintermute analysts have viewed Bitcoin’s recent recovery as a relief rally stemming from macroeconomic changes, rather than a transition to a structural bull market.
Analysts say that signs of a slowdown in the US economy, expectations of a looser monetary policy from the Federal Reserve, and easing tensions in the Middle East have led to a recovery in risky assets like Bitcoin.
At this point, analysts noted that the recovery was a combination of internal and external factors.
Wintermute concluded that these developments were sufficient to explain the recent gains without needing to look for a larger structural reason, and that the market was not currently in a structural bull market.
However, analysts added that Bitcoin’s rise appears relatively resilient. The company report noted that whales have accumulated over 270,000 Bitcoin near the 200-week moving average, and that demand in the options market has shifted from downward hedging to the purchase of call options at $60,000 to $70,000.
Wintermute concluded by stating that ETF flows should be closely monitored, noting that ETF fund flows have not yet improved to the point of showing net inflows.
Analysts note that a single day’s ETF inflow is not enough to confirm a trend reversal in BTC, and while they consider the recovery a meaningful signal, they recommend a cautious approach until sustainable ETF inflows are confirmed.
