Bitcoin and altcoins may have become healthier following the correction experienced in recent weeks. At this point, cryptocurrency market maker Wintermute noted that the recent correction has
Bitcoin and altcoins may have become healthier following the correction experienced in recent weeks.
At this point, cryptocurrency market maker Wintermute noted that the recent correction has largely cleared excessive leverage from the crypto market.
According to Wintermute’s analysis, the recent market correction liquidated most leveraged positions and left the market structure healthier than before.
At this point, the problem of excessive leverage in the crypto market has been largely resolved.
Strategy, led by Michael Saylor, stated that its continued Bitcoin purchases helped alleviate concerns about potential selling pressure.
However, analysts note that capital inflows from spot Bitcoin ETFs and key buyers like Strategy are not as strong as in past rallies, making a sideways period more likely for now.
At this point, the firm believes that unless capital inflows improve, Bitcoin and the market are likely to remain in a certain range rather than rise in the foreseeable future.
Wintermute also added that the market could experience a short-term rebound if there is new, stronger, softer US PCE data or if geopolitical tensions in the Middle East ease.
However, this type of rise seems more likely to be a technical rebound rather than a sign that the market has hit its bottom.
*This is not investment advice.
Continue Reading: Leverage Removed in Bitcoin: A Rally May Occur, But the Bottom Is Still Not Here! Giant Company Announces Its Expectations!
