Wintermute said Bitcoin’s narrow trading range could break as a Federal Reserve decision, U.S. midterm elections and third-quarter earnings approach, BlockBeats reported on Oct. 20. The market maker identified $87,000 as a level that could confirm an upside break and said a sustained move below $82,500 could send prices toward the low $70,000s.
Macro and AI catalysts
The report cited CPI rising from 3.4% in August to 3.7%, with core CPI up 0.3% month over month versus a 0.2% expectation. Wintermute said the recent rise in U.S. Treasuries reflected money leaving crowded AI growth trades rather than improved inflation expectations. A hawkish signal at the Fed’s Oct. 28 meeting could reinforce expectations for a December rate increase, the report said.
Crypto positioning
Bitcoin fell 1.99% over the week, while the Nasdaq declined 5.52% and altcoins dropped 5.69%, according to the report. Funds were moving into Bitcoin and Ether and out of most altcoins. Wintermute said low implied volatility could mean the market is underestimating later volatility risk.
Source: BlockBeats flash, citing Wintermute’s market report.