Key Highlights
- BTC struggles below $70K as AI disruption and trade shifts reshape markets, keeping investors cautious and risk appetite low.
- Deglobalization and sticky inflation pressure growth assets, boosting gold, commodities, and energy, while crypto remains high beta.
- Algorithmic selling wiped $60B from crypto in hours, signaling volatility; institutional interest remains muted for now.
The largest cryptocurrency Bitcoin (BTC) has struggled to reclaim $70,000 as macroeconomic shifts reshape markets, according to Wintermute’s latest market update. Trading has remained rangebound between $64,000 and $67,000 following recent liquidations, highlighting a choppy and low-conviction environment.
In an X update, the market maker said high-risk assets like Bitcoin are now behaving more like major altcoins, showing similar ups and downs. Experts say that big changes, like AI shaking up industries and global trade slowing down, could be reshaping crypto’s place in 2026.
In the past, markets reacted quickly to things like tariff news, Fed announcements, or company earnings. But those quick triggers aren’t driving trends anymore. Wintermute says the market seems to be shifting into a new phase.
The Federal Reserve, which used to have a strong influence, can’t move prices as easily now because growth is slowing and inflation remains stubborn. As a result, investors are starting to doubt the “Fed/Trump put”—the safety net that once helped growth and tech assets perform.
AI re-rating and deglobalization shape markets
Two major forces are now shaping the market: the AI rerate and deglobalization. Wintermute explained, “U.S. FY25 earnings combined with Anthropic’s recent model releases have forced the market to underwrite AI disruption risk sector by sector.”
This means that investors are reassessing what kind of companies will actually benefit from AI. The software advantage, the growth prospects, and the hardware spending are all under scrutiny. The easy trade in AI seems to be over, and the market is becoming increasingly unpredictable and complicated.
At the same time, deglobalization is putting more pressure on markets. After the Supreme Court ruling on Section 122, tariffs are now seen as permanent, not temporary. Supply chains remain broken, input costs stay high, and political or trade conflicts now pose ongoing risks.
Together, these trends are lowering the value of globally-connected, software-focused growth companies. Meanwhile, traditional assets like gold, industrials, energy, and other commodities are doing better.
Crypto market reacts with volatility
Bitcoin has attempted and failed several times to rise above the mark of $70,000 after the liquidations, which indicates that large institutional investors are not showing significant interest.
Similarly, the price of Ethereum (ETH) has also fallen below the mark of $1,900, and the support levels for the coin are at $1,600. Further, the signals from the derivatives market indicate that the market is being cautious, as the open interest is decreasing and the put options remain high.
These trends, therefore, indicate that crypto is being treated like the riskiest growth asset, similar to tech and momentum stocks. The cost of holding growth assets is rising, and the Fed has limited ability to stabilize the market. However, Wintermute cautions that it’s too soon to declare a permanent shift, noting that past market rotations eventually brought back risk appetite and restored momentum.
Also read: Ethereum Foundation Stakes First 2,016 ETH as Part of Long-Term Strategy
