Wintermute: Bitcoin market demand is insufficient, and it may remain volatile in the short term.

PANews reported on February 10th that, according to Wintermute analysis, Bitcoin's price fell below the $80,000 mark for the first time since April of last year, rebounding to around $70,000 after touching $60,000. This correction resulted in over $2.7 billion in leveraged liquidations, wiping out all gains since Trump's election in 2024. Three factors combined to influence the market: Warsh's nomination of the Federal Reserve Chairman, Mag7's poor earnings report, and a significant correction in the precious metals market. Data shows that selling pressure persists in the US, with BTC ETFs experiencing net outflows of $6.2 billion since November of last year, indicating a significant weakening of institutional demand. Furthermore, capital inflows into the AI ​​sector have negatively impacted the crypto market.

Analysts believe that although leverage has been liquidated, spot trading volume remains low, indicating insufficient market demand and potentially limiting future price movements. Data shows that Bitcoin is currently trading below the holding costs of many digital asset companies, and ETF funds continue to flow out, with the Coinbase premium remaining negative. Institutional fund flows have a greater impact on market direction. The market may remain volatile in the short term, and a clearer upward trend will only emerge after key indicators such as ETF inflows, a positive premium, and a stable basis.