Bitcoin Downtrend: Wintermute Research Released

Recently, the high correlation between Bitcoin (BTC) and stocks has caught attention. The correlation between Nasdaq and Bitcoin has reached a level of 0.8 again, indicating that declines have a negative impact on prices. A new report published by Wintermute emphasizes that this high correlation will only be downward.

According to the report, Bitcoin does not respond sufficiently when stocks rise, and reflects its losses more sharply when Nasdaq falls. This situation is shaped in an environment where capital flowing into the crypto market and narratives have recently shifted towards U.S. stocks. Wintermute points to the negative impact of the current market structure on crypto assets and particularly highlights the liquidity contraction observed on the spot side. This makes price reactions more fragile.

Historical data reveals that similar correlation behaviors have occurred at market bottom levels. Wintermute recalls that such a situation in the past has generally stemmed from investor fatigue and has occurred in a period of 'silence' rather than excessive optimism. The downward correlation in Bitcoin indicates a situation where investors' risk appetite has shifted in favor of stocks.

The report indicates that along with the values lost in the market, it is in search of new catalysts for potential recovery alongside bottom signals. Investors are also starting to reposition themselves after a negative period. However, the current situation is more interpreted as a portrayal pointing towards downturn areas rather than a dangerous peak.