Wintermute: $85,000 is a key level for BTC, pay attention to changes in ETF fund flows or the dollar's movement

Wintermute released a market dynamics report on X, indicating that Bitcoin's price has been hovering between $85,000 and $94,000 for 60 days. The $85,000 level has been tested multiple times, serving either as a strong bottom or a trap about to be triggered. Despite negative capital inflows in the U.S. stock market and compressed volatility, this price level remains resilient, suggesting that there is buying interest in the market, albeit not very strong.

The report states that Bitcoin is currently in a dilemma, neither weak enough to drop nor strong enough to regain upward momentum. The macroeconomic environment is brewing a wave of market activity, but the cryptocurrency market has failed to keep pace with this trend.

A shift in ETF capital flow or the direction of the dollar could change this situation. If the Federal Reserve intervenes in the yen exchange rate while the dollar continues to strengthen, it would provide a strong catalyst for risk assets. The announcement of Mag 7 and the ongoing strength of AI-related news will drive the Nasdaq index up, subsequently boosting cryptocurrencies. On the other hand, Powell's hawkish stance or an escalation in tariffs will provide strong support for another test of the $85,000 level.