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Wintermute: Rising rate hike expectations combined with ETF outflows weigh on BTC and ETH, which trend lower this week.

PANews October 13 news: According to Wintermute's weekly market update, the Federal Reserve meeting minutes show that most officials expect another rate hike before the end of the year, with no mention of a rate cut path, and the U.S. 10-year Treasury yield hit a multi-decade high. Affected by this, BTC fell 3.2% this week, retreating to around $83,000; ETH fell 7.0%; while the S&P 500 rose 1.2%, setting a record high.

In terms of capital flows, U.S. spot BTC ETFs saw net outflows of about $679 million this week, the largest weekly outflow since June; ETH ETFs saw outflows of $542 million. CoinGlass data shows that around Thursday's low, about $1.19 billion was liquidated within 24 hours, of which long positions accounted for $1.06 billion. ETH also came under additional pressure from news that researchers affiliated with the Ethereum Foundation suggested users migrate to new addresses. BTC market share rose to about 59.5%, the most obvious internal signal this week.

Wintermute pointed out that with the Federal Reserve leaning toward rate hikes, yields will be difficult to fall in the short term, and both conditions must be met—"long-end rates stabilizing" and "spot ETFs resuming net inflows"—before sentiment toward the crypto market can turn optimistic again, and suggested focusing this week on the September CPI data to be released on Wednesday and financial institutions' and AI-related earnings reports.

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