Bitcoin Struggles Below $70K as Institutional Demand Fades Amid Macro Pressures

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<a href="https://inrusdinr.in/btc-usd/">Bitcoin</a> Stalls Below $70K as Institutional Demand Remains Weak, Says Wintermute

As a crypto investor, I’m watching Bitcoin closely, and it’s currently having a tough time staying above $70,000. What’s concerning is that there’s less and less activity in the market, and it seems like big players are pulling back – they’re not as eager to buy as they were before. It suggests the initial excitement from institutions might be cooling off.

Bitcoin is still trading under $70,000, influenced by general economic uncertainty that’s affecting investments considered risky. Recent selling activity has narrowed Bitcoin’s price range to between $64,000 and $67,000, and it’s currently showing little strong movement. According to Wintermute, this isn’t just a temporary fluctuation.

Capital Rotates Into Defensive Sectors as Structural Pressures Build

As a crypto investor, I’ve been following Wintermute’s latest market analysis, and it’s painting a pretty clear picture: Bitcoin is now acting a lot like a riskier asset, moving in tandem with bigger altcoins and generally mirroring what’s happening in the tech stock market. The initial excitement we saw earlier this year has definitely cooled off. Right now, it feels like broader economic trends are putting more pressure on prices than just news headlines – it’s a more fundamental shift, and it’s creating some persistent downward pressure.

Over the past year, markets often jumped at small pieces of news. Things like updates on tariffs, statements from the Federal Reserve, and company earnings reports caused prices to change quickly. However, according to Wintermute, this trend seems to be changing, with a larger, more fundamental shift now influencing how investors are deciding where to put their money.

— Wintermute (@wintermute_t)

The Federal Reserve’s actions don’t seem to have the same impact on markets as they used to. Inflation is sticking around, and the economy is starting to slow down. Recent interest rate cuts have even contributed to higher inflation. This has eroded trust in the idea that the Fed will always step in to prevent market declines—what’s often called the ‘Fed put’. Consequently, investors are now requiring greater returns to justify investing in companies expected to grow quickly. This change is being strengthened by two long-term trends.

Investors are starting to value companies with artificial intelligence differently. Market prices are adjusting as people rethink how AI will change various industries. Recent strong financial results and new AI models from companies like Anthropic have caused investors to reconsider which companies are truly safe investments. Software companies previously seen as stable are now facing pressure, as their advantages are being challenged. Hardware companies are also under scrutiny due to increasing costs and unclear potential profits. The initial widespread excitement around AI has cooled, leading to more market fluctuations and shifts in which sectors are favored.

Next, we’re seeing a trend towards deglobalization, where countries are trading less with each other and focusing more on making things themselves. After a Supreme Court decision, the government changed the legal basis for tariffs from one law (IEEPA) to another (Section 122) to keep its ability to impose them.

Wintermute believes this signals that tariffs are here to stay. Long-term investment strategies are now taking into account disrupted supply chains, increased costs for materials, and global political instability.

These trends create challenges for big companies that rely on international trade and healthy global economies. Plus, with uncertain interest rates, investors are lacking clear guidance from policymakers, adding to market instability.

Options Market Prices in Downside Risk

Digital assets, like Bitcoin, are currently struggling as investors shift their money to other areas of the market. Bitcoin hasn’t been able to break back above $70,000 despite several tries since a recent sharp sell-off. The fact that it hasn’t bounced back strongly is more significant than its current price range.

Ethereum‘s price fell below $1,900 this week. Although this is mostly a psychological barrier, it suggests growing negativity in the market. Wintermute analysts believe a drop to $1,600 would be a more significant technical concern if the price continues to fall.

Even though Bitcoin’s price has become more stable, we haven’t seen a significant increase in demand from institutions. When Bitcoin was trading in the $85,000 to $95,000 range previously, institutional investors were much more active.

Currently, there isn’t strong expectation of prices going up, as indicated by low futures premiums. Traders are more focused on protecting themselves from potential price drops, according to options data. Plus, the overall number of open positions has been decreasing since October, suggesting people are closing out trades rather than opening new ones.

Trading desks are currently experiencing more sales than purchases. While some wealthy investors briefly showed interest in certain alternative cryptocurrencies earlier in the week, that demand quickly faded. Currently, most trading activity revolves around minimizing risk and safeguarding existing investments, rather than anticipating a price increase.

Bitcoin is facing increased selling pressure as money is flowing out of Bitcoin ETFs. Currently, it’s behaving more like a risky tech stock, while investors are preferring safer options like gold, commodities, and established value stocks. This makes cryptocurrency less appealing, and general economic and political uncertainty is further dampening investor confidence.

Wintermute notes that we’ve seen similar periods of economic worry in the past, which eventually turned around. Typically, investors become more willing to take risks when broader economic fears ease. However, the current situation with AI advancements and a decline in globalization might present challenges that make it difficult to compare to previous economic cycles.

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2026-02-25 08:19