"Bitcoin rebounds amid Middle East tensions…Selling pressure eases, institutional buying flows in"

Digital asset market maker Wintermute said it sees selling pressure easing and institutional inflows being confirmed in connection with the recent market rebound. However, it also offered a cautious view that it is still too early to call it a full-fledged trend reversal.

According to a crypto-focused media report on the 17th, Wintermute said in a recent report that “even amid Middle East tensions and stagflation fears, the crypto market showed relative strength versus major assets.”

The report explained that conflicts in the Middle East have shown signs of becoming protracted, simultaneously lifting international oil prices and fueling inflationary pressure. As a result, expectations for rate cuts within the year have receded, and uncertainty over monetary policy has increased.

In this environment, Bitcoin has been relatively resilient compared with other assets. Wintermute assessed that “as traditional assets experience volatility, Bitcoin is drawing attention as an alternative asset.”

On-chain and flow indicators also pointed to signs of structural improvement. As the Coinbase premium normalized, persistent selling pressure eased, and spot Bitcoin exchange-traded funds (ETFs) logged net inflows for five consecutive sessions. Buying interest also appeared to have expanded in over-the-counter (OTC) trading, led by institutional investors.

In particular, institutional demand was seen concentrating as Bitcoin traded in the mid-$60,000 range, while retail investors were analyzed to be maintaining a relatively wait-and-see stance. In derivatives markets as well, volatility has contracted even as prices rise, forming what it described as a “healthy uptrend structure.”

Still, Wintermute stressed that it is difficult to conclude the current move marks a full-fledged bull market. “Selling pressure has been largely absorbed, but additional price breakouts and confirmation of demand are needed to verify a trend reversal,” it said.

It added that “the $74,000 and $80,000 levels could act as key resistance,” and noted that “the direction of central bank policy and the trajectory of energy prices will be key variables for the market going forward.”

Wintermute said “the market is moving past the early bear-market phase and into a stage where a base for a rebound is being formed,” adding that “institutional buying and a ‘hard asset’ narrative driven by geopolitical factors are working positively for Bitcoin.”