Crypto Leverage Reset Complete, but Bitcoin Institutional Demand Slows: Wintermute

In its latest market update, Wintermute said that most of the excess leverage in the crypto market has now been worked off. Meanwhile, ongoing Bitcoin accumulation by Strategy has helped ease earlier concerns about potential selling pressure.

However, the firm also pointed out that fresh inflows from major participants such as ETFs and Strategy have slowed compared with earlier stages of the cycle.

Against this backdrop, Wintermute suggests that without a meaningful pickup in structural demand, market conditions are more likely to stay range-bound rather than develop into a sustained uptrend.

Looking ahead, the firm notes that any improvement in macro or geopolitical conditions, such as softer U.S. PCE data or easing tensions in the Middle East, could trigger a short-term rebound, though such a move would likely be temporary rather than a clear signal of a market bottom.

Bitcoin is currently trading at $62,436, down 4.3% over the past 24 hours.

Source: Wintermute