Crypto Giant Wintermute Issues Critical Warning: The End of the Bear Market Is Near, But…

Following sharp declines in the cryptocurrency market, Wintermute warned investors by likening the market’s current state to the final stages of a bear season.

The waters remain turbulent in the crypto world, and Wintermute, one of the leading market maker giants, has drawn significant attention with its latest report. While analyzing the reasons behind the recent sell-off in digital assets, the company provided critical signals indicating that the market has not yet reached its bottom point. In particular, the weakening of AI-focused trades and macroeconomic pressures continue to dampen investor appetite.

Has the Capitulation Process Begun in Cryptocurrencies?

According to the report, Bitcoin (BTC) prices dropped by 5.9% over the past week, dipping below the $60,000 level and touching its 200-week moving average, a critical technical indicator. During this period, Ethereum (ETH) took a harder hit with a 7.9% decline. Wintermute analysts state that on-chain data and market sentiment point to a capitulation process—where investors lose hope and sell off. However, outflows from spot ETFs and weakness in stablecoin purchases suggest that the market has not yet formed a secure floor.

The breakdown in AI-related trades highlighted in the shared analyses increases the risk of new liquidity shifting toward AI-focused stocks instead of cryptocurrencies. In particular, weakness in the Nasdaq index, a strong dollar, and expectations of high interest rates are fueling pressure on risky assets. Additionally, the fact that institutional “persistent buy demand” for Bitcoin is now becoming contingent on specific conditions is changing expectations for market cash flow. It is stated that investors should remain cautious for a while longer until the market’s direction becomes clearer.