Wintermute analysts forecasted consolidation in the cryptocurrency market - ForkLog

BTClogo# Wintermute analysts forecasted consolidation in the crypto market

The digital asset market grew amid US inflation data and news of a preliminary agreement between the US and Iran. Experts from Wintermute pointed this out.

Source: Wintermute. Bitcoin stabilized above $66,000 after falling at the beginning of the month. The positive trend is linked to a slowdown in the core Consumer Price Index, the presumed opening of the Strait of Hormuz, and the lifting of the US blockade on Iranian ports.

Inflation in the US was 4.2% year-over-year. This matched analysts' forecasts. Meanwhile, the core measure decreased to 2.9%, signaling a slowdown in price growth.

An additional factor was the information about the preliminary agreement between the US and Iran. The event is scheduled for June 19 in Switzerland. Against this backdrop, Brent crude oil prices fell to $80, and government bond yields decreased.

Bitcoin gained 1.9% over the week, while Ethereum showed weak dynamics and fell by 0.4%. Despite a local rebound, capital inflow into crypto assets remains low. In the segments of spot ETFs and stablecoins, there is a withdrawal of funds. Institutional investors are currently favoring the stock market.

Analysts called the recent rise from $60,000 a “bear market rally.” In their opinion, structural changes in liquidity are needed for a stable trend toward $100,000. Currently, there are no signs of new money inflows, so sideways movement is expected in the summer.

The key event of the week will be the Fed meeting. Investors are awaiting updated forecasts from the regulator. If the authorities' rhetoric turns out to be dovish due to cheap oil, the growth of risky assets will continue. Otherwise, the market may test levels below $60,000 again. Wintermute advised monitoring ETF inflows rather than news headlines.

Experts concluded that until there is a sustainable inflow of funds into ETFs and stablecoins, it is premature to talk about long-term growth. The baseline scenario for summer remains consolidation.

Recall that Galaxy Research concluded that the current Bitcoin cycle has not yet reached its bottom, and the price could drop to the $40,000–46,000 range.

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