Bad News from a Market Giant: “It’s Still Too Early for Bitcoin to Hit Bottom, These Levels Could Be Seen!”

The leading cryptocurrency, Bitcoin ($BTC), surged above $66,000 following news of a potential agreement between the US and Iran. While talk of a bottom for $BTC, which has recovered for the second time from $60,000, is increasing, Wintermute notes that it’s still too early to say Bitcoin has hit the bottom.

Wintermute, a leading market maker in the crypto world, has analyzed the recent surge and says that $BTC could still fall to $50,000.

Wintermute analysts stated in their latest weekly report that it is still too early to determine whether the market has reached its bottom.

Analysts stated that while $BTC’s recovery from lows around $60,000 provided some relief to the market, it did not confirm whether a structural bottom had been reached.

Analysts, reminding investors that it’s too early for the bottom, warned them about the $50,000 level.

Wintermute stated that the recovery in Bitcoin and altcoins stemmed from reduced geopolitical risk due to decreased US inflation concerns and the end of the conflict in Iran.

He pointed out that the recent upward movement is more a reflection of a recovery in positive sentiment towards risky assets than the beginning of a new bull market.

Lastly, 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 firm purchases.

Wintermute stated that Bitcoin could continue to fluctuate during the summer’s low liquidity and could still fall to the $50,000 range, adding that the key signal is whether ETF and stablecoin inflows will make a sustainable comeback.

“Oil is falling, inflation fears are easing, but there is no sign of a bullish structural shift in the cryptocurrency market.”

What to watch here isn’t price or headlines, but fund flows. Looking at stablecoin inflows, ETF inflows, and treasury company buying activity, there are no signs of a strong rally for $BTC and altcoins.

Therefore, we believe it’s still too early for Bitcoin to hit the bottom. And we don’t rule out the possibility of seeing $50,000 for $BTC. So, it’s not entirely clear that $60,000 is the bottom.”

*This is not investment advice.