Bitcoin and altcoins experienced a significant surge last week despite the delay in the Clarity Act and the Fed’s interest rate hike decision.
At this point, with two important macroeconomic developments from last week now behind us in the cryptocurrency market, Bitcoin and Ethereum have risen, surpassing the upper limits of their previous trading ranges.
BTC surpassed $87,000 for the first time since January, while ETH climbed above $2,700.
While other major altcoins also saw significant gains, XRP surpassed $1.6 and Solana approached the $120 mark.
In its latest analysis, market maker Wintermute stated that although the Federal Reserve’s interest rate decision and the outcome of the Clarity Act process in the US Senate were negative, they eliminated a significant portion of the uncertainty in the market.
ETF Flows Supported Recovery!
Wintermute analysts pointed out that the rise was not solely due to the closing of short positions in the futures market.
At this point, the company noted that fund flows into spot Bitcoin ETFs in the US were also supporting the recovery.
Citing ETF data, the company stated that despite total outflows of $746 million on Tuesday and Wednesday, net inflows of $159.5 million were recorded on Thursday and $433 million on Friday. This reduced the total weekly net outflow to approximately $6 million.
Attention May Turn Towards the Left and Hype!
Wintermute expects the market to establish new price levels and absorb profit-taking after a breakout above the current range in Bitcoin and Ethereum.
“Two key variables that introduced uncertainty to the markets have been resolved and the trading range has been broken. This week will be a period for new price levels to form and for profit-taking volume to be absorbed.”
The company states that in the short term, the focus may be on Bitcoin and Ethereum, as well as altcoins such as Solana and Hyperliquid (HYPE).
“We expect the focus this week to shift to BTC, ETH (along with Glamsterdam), SOL, and HYPE. For now, the excitement seems healthy. Green candles lift the spirits.”
Wintermute stated that if a new bull run occurs in Bitcoin, capital could then flow into small and medium-sized altcoins.
*This is not investment advice.
Continue Reading: Wintermute Draws Attention to Two Altcoins Besides Bitcoin and Ethereum! “Uncertainty is Over, These Altcoins Are Next!”