Wintermute: Market to remain volatile until H2, unlike FTX-style collapses

Cryptocurrency market maker Wintermute predicts that the current period of market volatility will continue until policy uncertainty is resolved in the second half of this year. The firm noted that Bitcoin recently fell below $80,000 for the first time since a tariff incident last April, triggering $2.55 billion in forced liquidations. Wintermute attributed the decline not to a single event but to a combination of macroeconomic factors, including disappointing earnings from the U.S. Magnificent Seven companies, the nomination of known hawk Kevin Warsh for Federal Reserve Chair, and a cooling-off in the overheated precious metals sector. However, Wintermute emphasized that this downturn differs from the collapses of FTX and Luna, as it stems from macro environmental changes and position liquidations rather than structural bankruptcies. The firm suggested that with stronger crypto infrastructure and continued stablecoin adoption, market sentiment could recover quickly once the Fed's policy path becomes clearer later this year.