The main cryptocurrency, Bitcoin ($BTC), jumped above $66,000 following news of a potential deal between the United States and Iran. Speaking of a fund for $BTCwhich recovered for the second time from $60,000, is rising, Wintermute notes that it is still too early to say that Bitcoin has hit bottom.
Wintermute, one of the leading market makers in the crypto world, analyzed the recent increase and claims that $BTC could still fall to $50,000.
Wintermute analysts said in their latest weekly report that it is still too early to determine whether the market has bottomed out.
Analysts said that although $BTCThe recovery from a low around $60,000 brought some relief to the market, but it did not confirm whether a structural bottom had been reached.
Analysts, reminding investors that it is too early to bottom, have warned them against the $50,000 level.
Wintermute said the recovery in Bitcoin and altcoins was a result of reduced geopolitical risk from waning inflation concerns in the United States and the end of the conflict in Iran.
He pointed out that the recent bullish movement reflects more of a return of positive sentiment towards risky assets than the start of a new bull market.
Finally, Wintermute analyzed that it is too early to declare a market bottom unless there is a significant sign of improvement and increase in stablecoin net inflows, spot ETF fund flows, or digital asset treasury company purchases.
Wintermute said Bitcoin could continue to fluctuate during the low liquidity of the summer and could still fall into the $50,000 range, adding that the key signal is whether ETF and stablecoin flows will make a sustainable comeback.
“Oil is falling, inflation fears are easing, but there are no signs of a bullish structural change in the cryptocurrency market.”
What to watch here is not prices or headlines, but fund flows. When it comes to stablecoin inflows, ETF inflows, and treasury company buying activity, there are no signs of a strong recovery for $BTC and altcoins.
Therefore, we believe that it is still too early for Bitcoin to bottom out. And we do not exclude the possibility of seeing $50,000 for $BTC. So it’s not entirely clear that $60,000 is the minimum. »
*This does not constitute investment advice.