Market maker Wintermute warns of potential downside to $59,000 amid thinning liquidity and rising token correlations.
Bitcoin faces downward pressure toward $59,000 as summer liquidity dries up and macro uncertainty persists, according to a market-making firm. The asset remains caught between last week’s hawkish Fed signals and geopolitical tensions, including Iran-related headlines.
Options markets suggest limited near-term volatility, with bitcoin expected to trade between $61,242 and $63,563 over the next 24 hours. Ether’s range is slightly wider, at $1,606 to $1,694. However, deteriorating liquidity and rising token correlations could amplify moves, particularly ahead of key events like Thursday’s PCE inflation data and month-end options expiry.
$59,000 is flagged as critical support, with traders monitoring whether the level holds if selling pressure intensifies. Institutional demand via ETF flows remains absent, adding to the bearish backdrop.