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Wintermute Says Ethereum Is the Wrong Bet for Today’s Macro as ETH Slides 10%

Rising borrowing costs shrink demand for long‑payoff bets such as Ethereum.

Overview

  • Wintermute judged ETH a poor fit for current conditions after a roughly 10.2% weekly drop and a slide in the ETH-to-Bitcoin ratio toward 0.0275.
  • The firm points to higher U.S. Treasury yields and renewed inflation, with money moving to AI stocks and hard‑asset plays instead of ETH.
  • Wintermute highlights weaker Ethereum demand across spot and derivatives, noting softer funding, higher implied volatility, and pressure on ETFs.
  • Technical signals cited by the firm show bearish momentum and fragile support in the low $2,000s, suggesting choppy, range‑bound trading.
  • For Bitcoin, Wintermute says a bullish stance now relies on institutions returning to spot and ETF buying, as recent flows show about $1 billion out of BTC ETFs and roughly $255 million out of ETH funds.