Greed

Bitcoin ETF

Bitcoin

<ul>
 <li>Wintermute said Bitcoin fell below $60,000 as AI stock weakness and higher rate expectations pressured risk assets.</li>
 <li>The firm noted extreme fear and rising unrealized losses but said full market capitulation may not have occurred.</li>
 <li>Bitcoin ETF outflows and softer institutional demand continue to weigh on the broader crypto market.</li>
</ul>
<p>Bitcoin lost key support levels during the week ending June 29 as broader market weakness hit risk assets, according to Wintermute's latest market <a href="https://x.com/wintermute_t/status/2071911143233511528?s=20" rel="noopener noreferrer nofollow">report</a>. The firm said Bitcoin fell 5.9%, briefly dropping below $60,000 to around $59,300, while Ethereum declined 7.9%, as fading enthusiasm for artificial intelligence stocks, a stronger U.S. dollar, and higher interest-rate expectations weighed on crypto markets.</p>
<h2 class="wp-block-heading" id="strong-ai-selloff-adds-pressure-to-crypto-strong"><strong>AI Selloff Adds Pressure To Crypto</strong></h2>
<p>According to Wintermute, the recent downturn began as the AI-driven equity rally weakened. The Nasdaq fell 4.5% during its fifth consecutive losing session, while semiconductor stocks faced heavy selling pressure.</p>
<p>Notably, the <a href="https://cryptofrontnews.com/grayscale-and-vaneck-amend-bnb-etf-applications/" rel="noopener noreferrer nofollow">VanEck</a> Semiconductor ETF dropped 7% in a single session. Meanwhile, South Korea's chip-heavy KOSPI briefly triggered a circuit breaker during trading. Wintermute said investors started questioning AI-related spending levels and company valuations.&nbsp;</p>
<p>At the same time, May PCE inflation reached 4.1%, its highest level since 2023. As inflation remained elevated, markets pushed expectations for policy easing further out. Meanwhile, the U.S. dollar climbed near a one-year high around 101, creating additional pressure for risk assets.</p>
<h2 class="wp-block-heading" id="strong-capitulation-signals-emerge-strong"><strong>Capitulation Signals Emerge</strong></h2>
<p>Against that backdrop, crypto moved closely with technology stocks. Bitcoin touched its 200-week moving average after falling more than 50% from its $126,000 peak. Ethereum underperformed and traded near $1,580 after its weekly decline.&nbsp;</p>
<p>However, Wintermute said sentiment indicators suggest capitulation is developing across the market. The report noted that the Fear and Greed Index remained between 18 and 24, reflecting extreme fear.&nbsp;</p>
<div id="media_image-7" class="widget widget_media_image cfn-widget cfn-banner cfn-banner-article cfn-banner_728"><a href="https://t.me/EliteFXLabs" rel="noopener noreferrer nofollow"><img width="1280" height="698" src="https://cryptofrontnews.com/wp-content/uploads/2026/04/EliteFXLabsBanner-0.webp" alt="EliteFXLabs Banner"></a>
</div>
<p>In addition, the percentage of <a href="https://cryptofrontnews.com/bitcoin-recovery-signals-emerge-as-60k-suppor/" rel="noopener noreferrer nofollow">Bitcoin</a> supply held at a loss approached 50%. Wintermute added that previous cycle lows often occurred when that figure moved closer to 60%, suggesting conditions remain incomplete.</p>
<h2 class="wp-block-heading" id="strong-etf-outflows-remain-a-concern-strong"><strong>ETF Outflows Remain A Concern</strong></h2>
<p>While sentiment weakened, Wintermute said liquidity indicators have yet to improve. Bitcoin exchange-traded funds recorded approximately $1.8 billion in outflows during the week. The firm also highlighted weaker activity from stablecoins and digital asset treasury buyers.&nbsp;</p>
<p>Furthermore, Wintermute pointed to recent changes at Strategy. The company introduced a new capital framework, increased <a href="https://cryptofrontnews.com/chainlink-expands-strc-access-as-saturn-tops-220m/" rel="noopener noreferrer nofollow">STRC's</a> dividend to 12%, authorized buybacks, and approved potential Bitcoin sales worth up to $1.25 billion.</p>
<p>According to Wintermute, the framework reduces immediate capital structure risks. However, it also shows that treasury-company Bitcoin demand is becoming conditional rather than automatic.</p>
<p>The post <a href="https://cryptofrontnews.com/bitcoin-breaks-60k-as-wintermute-sees-bear-market-deepen/" rel="noopener noreferrer nofollow">Bitcoin Breaks $60K as Wintermute Sees Bear Market Deepen</a> appears on <a href="https://cryptofrontnews.com" rel="noopener noreferrer nofollow">Crypto Front News</a>. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.</p>

Bitcoin Breaks $60K as Wintermute Sees Bear Market Deepen

Table of Contents

CFN

Other articles published on Jul 1, 2026

Join our free newsletter for daily crypto updates!