Wintermute: Rising Rate Hike Expectations and ETF Outflows Weigh on BTC and ETH This Week

PANews, October 13 - According to Wintermute's weekly market update, the Federal Reserve's meeting minutes showed that most officials expect another rate hike before year-end, with no mention of a rate cut path, and the 10-year U.S. Treasury yield hit multi-decade highs. As a result, BTC fell 3.2% this week, retreating to the $83,000 range; ETH dropped 7.0%; while the S&P 500 rose 1.2%, hitting a record high.

In terms of fund flows, U.S. spot BTC ETFs saw net outflows of approximately $679 million this week, the largest weekly outflow since June; ETH ETFs saw outflows of $542 million. CoinGlass data shows that liquidations totaled approximately $1.19 billion within 24 hours near Thursday's low, with long positions accounting for $1.06 billion. ETH also faced additional pressure from news that researchers associated with the Ethereum Foundation recommended users migrate to new addresses. BTC's market dominance rose to approximately 59.5%, the most notable internal signal this week.

Wintermute noted that with the Fed leaning toward rate hikes, yields are unlikely to decline in the short term, and both "stabilization of long-end rates" and "resumption of net inflows into spot ETFs" must be met simultaneously to turn optimistic on the crypto market again. It also suggested focusing on Wednesday's September CPI data and financial institution and AI-related earnings reports this week.