According to Foresight News, Wintermute has indicated that the current phase in the cryptocurrency market is characterized more by consolidation than by selling. Despite a lag in performance during a week of risk-on sentiment and a reversal in ETF fund flows, the price range between $89,000 and $90,000 remains stable. Leverage has been cleared without triggering forced liquidations, and trading volumes are healthy. The price movement does not suggest a sell-off, which typically involves selling during rebounds without buying support, structural deterioration, and the exit of smart money. Instead, this appears to be tactical rotation: profit-taking during strength, repositioning, and capital waiting for the next entry opportunity. The bottom is consistently tested but holds firm.
Supporting this interpretation are developments such as Morgan Stanley's internal ETF application, Bank of America's advisor recommendations, and the upcoming vote on the CLARITY Act. These actions are not indicative of a market top. Even with short-term fluctuations in capital flows, patient capital is accumulating.
The Consumer Price Index (CPI) and the CLARITY Act are key factors this week. Weak data could make rate cuts possible, and the passage of the act would alleviate long-standing pressures. This should be sufficient to break through the current range. The risk lies in overly strong CPI data, which could keep the Federal Reserve on hold, but even so, the bottom feels solid. Once the macro environment aligns, the structure is favorable for price increases.
