Bitcoin has broken out of a six-week stagnation and risen to $79,300. The rally was accelerated by a promise from the U.S. Department of the Treasury to increase the buyback of long-term bonds, as well as a large number of trader bets on the asset's decline. Wintermute believes that the period of weak price fluctuations has ended, however, following the rapid ascent, the leading cryptocurrency may briefly return to recently tested levels.
Experts from the market maker compared the current situation to that in May. Back then, the asset was approaching comparable price levels, but the inflow of funds into spot Bitcoin ETFs was noticeably weaker. The current higher inflows into the funds are considered by analysts to be one of the signs of sustained demand from large investors.
In the futures and options markets, traders have also started to anticipate more pronounced price swings. The seven-day volatility index exceeded 40%, while funding rates remained positive but did not reach high levels. According to Wintermute's assessment, market participants are gradually beginning to use borrowed funds again — following the recent wave of trader position liquidations.
The specialists at Wintermute believe that upcoming reports from microchip manufacturer Nvidia, U.S. economic statistics, and a speech by former head of the U.S. Federal Reserve Kevin Warsh, scheduled for August 28, will be able to influence the dynamics of the crypto market in the near term.
Earlier, the CEO of the American crypto exchange Coinbase, Brian Armstrong, stated that by 2030, Bitcoin could be worth several times more than the current $75,000. He cited changes in U.S. legislation as one of the growth factors.
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