Market maker Wintermute is sounding the alarm on a rapid narrative shift: within just five trading days, market positioning has rotated from pricing in rate cuts to debating whether the next move is a hike. Inflation pressure is re-entering the core macro story, and crypto is feeling it.
BTC briefly broke above $82,000 last week on momentum tied to Clarity Act developments, but the move didn't hold — the coin slid back to around $78,000, down 5.7% on the week. Wintermute attributed the breakout to leverage and short-covering rather than spot-led confirmation, a distinction that matters: momentum-driven rallies unwind faster when macro headwinds intensify.
ETH took a harder hit, falling 10.2% with the ETH/BTC cross dropping to roughly 0.0275. Wintermute flagged $76,000–$78,000 as the critical near-term support band for BTC, warning that higher yields and re-accelerating inflation could…
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