Wintermute names conditions for crypto market recovery

Wintermute analysts warn of further risks to the crypto market. According to them, digital assets have lost capital inflows against the backdrop of a growing stock market.

Growth in stock indices is supported by strong corporate earnings, while the cryptocurrency sector is experiencing outflows.

Two key conditions are needed for a sustainable market recovery: a decline and stabilization of yields on long-term U.S. government bonds, as well as a resumption of net inflows into spot cryptocurrency ETFs.

Until these conditions are met, the company does not recommend buying altcoins on short-term bounces. Investors should exercise caution until macroeconomic indicators stabilize.

Despite the current negative market conditions, Wintermute maintains a positive long-term forecast. Analysts believe that the current market cycle is still in its early stages.