Wintermute: Cryptocurrency Market Lacks AI-like Growth Narrative, Struggling to Attract New Capital

BlockBeats News, June 2nd - Wintermute released a market analysis stating that the cryptocurrency market has recently significantly underperformed compared to the US stock market. Bitcoin dropped below $70,000, while the S&P 500 index saw its ninth consecutive week of gains. At the same time, Bitcoin spot ETF saw outflows of around $1.4 billion, setting a new record for the longest continuous outflows since its inception, while the Ethereum ETF saw outflows of around $240 million. Market risk sentiment continues to shift towards the traditional US stock market.

On a macro level, the US core PCE in April rose to 3.3% year-on-year, indicating persistent inflationary pressures. Despite Brent crude oil prices plummeting by about 20% to around $91 during the month, the US 10-year Treasury yield fell to 4.45%. The market still anticipates a 35% to 40% probability of interest rate hikes within the year. In contrast, AI-driven software and technology sectors continue to deliver strong performances, propelling the Nasdaq index to a monthly gain of about 8%, with further inflows of funds into the US stock market.

The analysis suggests that the current cryptocurrency market lacks a growth narrative similar to AI, making it difficult to attract new inflows. Apart from Bitcoin and Ethereum, the market's highlights are mainly focused on the Hyperliquid ecosystem token, HYPE, which saw its price surpass $70 and continue to strengthen, becoming one of the few assets decoupled from the overall market's decline. The cryptocurrency market is still under short-term pressure, but long-term funds have begun to gradually enter the market. The future flow of ETF funds and US inflation data will remain key factors influencing market trends.