Rally Not Reversal: Wintermute Sees Relief Rally in Crypto Markets

The crypto market has seen a recent rally, but experts at Wintermute believe it's just a relief rally and not a structural reversal. The rebound comes amid weak US employment data and 'dovish' signals from the Fed.

According to Wintermute, whale wallets have added over 270,000 BTC near the 200-week moving average, while options flow has shifted away from downside protection toward call options at the $60,000-$70,000 level. This is seen as a 'cleaner' story for Bitcoin's move.

Ethereum, on the other hand, posted stronger gains but faced a concerning backdrop: the Ethereum Foundation recently cut one-fifth of its workforce and reduced its budget by 40%, while ETH ETF outflows totaled around $345 million over the previous week.