Bitcoin Downtrend: Wintermute Research Released

Recently, the high correlation of Bitcoin (BTC) with stocks has drawn attention. The correlation between Nasdaq and Bitcoin has reached 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 adequately when stocks rise and reflects its losses more severely when Nasdaq falls. This situation is shaping in an environment where capital flowing into the crypto market and narratives have recently shifted to U.S. stocks. Wintermute points out the negative impact of the current market structure on crypto assets, particularly highlighting the liquidity contraction observed on the spot side. This makes price reactions more fragile.

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

The report shows that the market is in search of potential new catalysts for recovery alongside the values it has lost and bottom signals. Investors are starting to position themselves again after a negative period. However, the current situation is assessed more as a representation of decline areas rather than a dangerous peak.