Wintermute: BTC's Current Price is Quite Attractive from a 12-18 Month Perspective

Foresight News reports that Wintermute stated macro factors are currently dominating everything, but cryptocurrencies showed resilience last week while stocks, bonds, and even gold were declining. The high correlation between cryptocurrencies and stocks observed in recent quarters has started to show cracks. The most likely explanation is that there are fewer marginal sellers now. The leverage in the cryptocurrency market is approximately $60 billion, about half of its peak level. In contrast, speculative positions in gold have accumulated significantly. When all assets are declining, the forced selling pressure that cryptocurrencies need to absorb is much smaller. This validates information heard from various market participants. From a 12-18 month perspective, the current price is quite attractive, although BTC buyers are willing to enter the market at a range extending from the current price to the low $50,000s. The market still has room for further downside, but most of the deleveraging phase seems to be over. Currently, cryptocurrencies are holding their ground and narrowing the performance gap with other risk assets. Whether this trend can continue once trading volume picks up remains to be seen. Next week's FOMC (Federal Open Market Committee) meeting is a near-term catalyst.