Wintermute Stays Cautious as Bitcoin Tests $80,000 Ahead of Fed

Wintermute said Bitcoin (BTC) faced a key test in Wednesday’s Federal Reserve meeting after a third straight weekly decline brought the cryptocurrency back toward $80,000.

Bitcoin fell 2.43% last week to about $80,500 and again tested the $80,000 level. Wintermute’s Oct. 26 market update cited $636 million in net outflows from U.S. spot ETFs on Thursday, the largest daily net outflow since June.

Wintermute said Bitcoin was correlated with AI-related stocks. The firm said the market’s reaction to Wednesday’s Federal Open Market Committee (FOMC) decision and subsequent inflation data would be key. It warned that a hawkish Fed tone or hotter-than-expected inflation could prompt selling across markets, including Bitcoin.

Bitcoin had recently reclaimed $82,500, a level that had earlier acted as resistance. Wintermute said it would remain cautious until the FOMC decision had passed and Bitcoin moved back above $82,500. The firm identified $76,000 as the next support level.