Wintermute: Bitcoin Has Lost ETF Support and Moved Into a Neutral Phase Ahead of the Fed Decision

• Outflows from bitcoin ETFs turned negative on a weekly basis for the first time since June, Wintermute experts noted.
• At the same time, they do not rule out the broader thesis that the crypto market’s uptrend will continue.

After the shift in ETF flows, the crypto market moved into a neutral phase ahead of the U.S. Federal Reserve’s decision. This was stated by Wintermute analysts.

ETFs no longer support bitcoin

The experts emphasized that during the shortened holiday week, $463 million was withdrawn from spot bitcoin ETFs. This is the first week of net outflows since June.

Wintermute points out that ETF inflows were one of the key drivers behind bitcoin’s rise from $63,000 to $82,000. When ETF-driven demand flipped the other way, bitcoin lost about $3,500.

In the firm’s view, this shift is important for the market’s next move. If ETFs do not return to steady inflows, bitcoin currently has no obvious source of new demand capable of pushing it out of its current range.

At the same time, Ethereum showed stronger performance. Spot ETH ETFs attracted $197 million over the week, with $216 million coming on Friday alone after U.S. inflation data was released. From Tuesday through Thursday, the funds, by contrast, recorded outflows.