Wintermute: Crypto lags stocks amid ETF outflows, but long-term outlook is bright

Crypto market maker Wintermute noted in a new report that while the S&P 500 has risen for nine consecutive weeks, the cryptocurrency market has been excluded from this rally. The report highlighted that Bitcoin ETFs are experiencing their longest continuous streak of net outflows since their launch and that Strategy ETFs have also entered a selling phase. Wintermute described this as a typical bear market pattern, attributing the divergence to a stock market driven by strong corporate earnings, a factor absent in crypto. However, the firm stated its long-term outlook for crypto remains relatively optimistic, suggesting the market cycle is currently resetting. While relative weakness is expected through the summer, Wintermute observed that long-term investors have begun entering the market via over-the-counter (OTC) desks using TWAP strategies. The report concluded that although predicting the exact bottom is difficult, current price levels are attractive from an 18-month perspective.