Wintermute: From a 12-18 month cycle perspective, the current BTC price is quite attractive

Foresight News reported that Wintermute stated in a post that macro factors are currently dominating everything, but last week cryptocurrencies demonstrated resilience while stocks, bonds, and even gold were all declining. The previously high correlation between cryptocurrencies and stocks over the past few quarters has begun to show cracks. The most likely explanation is that there are few marginal sellers left. The leverage in the cryptocurrency market is about $60 billion, roughly half of its peak level. In contrast, speculative positions in gold have accumulated significantly. When all assets are falling, cryptocurrencies face much less forced selling pressure to absorb.

This validates information heard from various market participants. From a 12-18 month cycle perspective, the current price levels are quite attractive, although the range in which BTC buyers are willing to enter extends from current levels down to the low $50,000s. The market still has room for further downside, but most of the deleveraging phase appears to be over. At present, cryptocurrencies are holding their ground and narrowing the performance gap with other risk assets. Whether this trend can continue once trading volumes pick up remains to be seen. Next week's FOMC (Federal Open Market Committee) meeting is the near-term catalyst.