14h05 ▪ 5 min read ▪ by Luc Jose A.
Summarize this article with:
Wintermute considers bitcoin as the main defensive asset of the crypto market in the face of the decline of altcoins and macroeconomic nervousness. However, this qualification remains relative: BTC has also fallen and does not constitute a risk-free investment.
In brief
- According to Wintermute, Bitcoin resists better than the Nasdaq and altcoins despite the market decline.
- BTC fell by 1.99% over the week, compared to 7% for Ether and 5.69% for altcoins.
- The threshold of 82500 dollars remains a decisive support, while 87000 dollars constitutes a major resistance.
- Investors favor bitcoin over altcoins, considered riskier in the current context.
- The Fed’s next decision could cause a new drop in bitcoin or support its rebound.
Bitcoin defends a decisive zone at 82500 dollars
In its latest weekly report, Wintermute places the threshold of 82500 dollars at the center of its analysis. Bitcoin fell by 1.99% over the week, but it resisted better than the Nasdaq and most major cryptos.
BTC briefly dropped towards 80400 dollars before rebounding. This downturn coincided with about 679 million dollars of net outflows recorded by American spot bitcoin ETFs.
The main figures show why Wintermute favors bitcoin in the current context :
- Bitcoin lost 1.99 % over the week ;
- The Nasdaq fell by 5.52 % ;
- All altcoins gave up about 5.69 % ;
- Ether dropped by 7 % ;
- Bitcoin ETFs suffered 679 million dollars of net outflows ;
- 82500 dollars represents BTC’s main defense level ;
- 87000 dollars constitutes the resistance to be broken.
Wintermute estimates :
Bitcoin’s 3.5 point lead over the Nasdaq shows stronger resistance than suggested by the macroeconomic context.
The market maker thus makes it a relative refuge within the crypto universe, rather than a safe haven comparable to a government bond.
This distinction is important. Bitcoin remains volatile and sensitive to interest rates, global liquidity, and investor behavior. It simply seems to absorb current pressure better than Ether, XRP, and smaller-cap digital assets.
Investors abandon the most fragile altcoins
The altcoin decline reflects a movement of capital concentration. Traders reduce their exposure to tokens considered riskier and mainly retreat to the most liquid cryptocurrencies.
Wintermute observes that “flows on altcoins become one-sided”, except for a few large assets considered stronger. This trend means that sales dominate much of the market, without sufficient demand to immediately absorb the offered tokens.
Ether holds an important place in this rotation, but its 7% weekly decline shows it does not benefit from the same protection as bitcoin. XRP remains even more exposed to the general weakness of altcoins, despite its high capitalization and US-regulated investment products.
According to Wintermute, “bitcoin must progress before altcoins can resume a widespread rise”. This reading reduces the probability of an autonomous rebound of Ether, XRP, or secondary tokens in the short term.
Correlations between the top 50, 100, and 250 cryptos have also increased. Assets thus move more in the same direction. In this type of market, project-specific characteristics weigh less than macroeconomic decisions and bitcoin movements.
Wintermute’s choice is not a purchase recommendation. It only indicates that the risk-return ratio currently seems more favorable on large cryptocurrencies, especially bitcoin, than on altcoins.
The Fed could break the crypto market balance
The acceleration of US inflation has reinforced investor caution. The annual price increase reached 3.7%, while core inflation rose 0.3% over one month. The rise in energy costs is thus beginning to affect other categories of goods and services.
Defensive capital has moved to Brent oil and US bonds. Brent gained about 5%, while Treasury securities rose 2.65%. At the same time, the return of links between traditional markets and cryptocurrencies weighed on digital assets.
Wintermute does not think the current stability will last against upcoming events. “We do not think this range will resist them”, says the firm regarding the Fed meeting, the US midterm elections, and earnings results.
The monetary decision on October 27 and 28 could trigger an exit from this zone. A stricter Fed speech could push bitcoin below 82500 dollars, possibly returning towards the lower 70000 dollar range.
Conversely, a more flexible central bank stance, accompanied by strong results on Wall Street, could favor a recovery. A sustained move above 87000 dollars would then strengthen the scenario of a return to previous highs.
Bitcoin thus appears as the most defensive crypto asset according to Wintermute, but this resistance still depends on maintaining 82500 dollars. Ether and XRP risk remaining under pressure as long as BTC does not regain a clearly bullish trajectory.
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Luc Jose A.
Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.