Bitcoin Holds $67K as Wintermute Flags Sentiment Divergence

Bitcoin (BTC) is demonstrating strong support around the $67,000 mark, even as a notable divergence emerges between its stable price and widespread bearish sentiment among investors. This resilience, particularly in avoiding dips below $60,000, is attributed to robust institutional investor demand and consistent long-term buying, which have absorbed significant liquidation events and geopolitical volatility. Market maker Wintermute highlighted this sentiment divergence, noting that the Fear and Greed Index has remained in 'extreme fear' for an extended period. Despite this, Bitcoin has absorbed a $403 million liquidation, persistent negative on-chain demand, and war-related shocks without falling below its yearly low. Institutional demand, particularly from spot Bitcoin ETFs and corporate buying, played a crucial role in March, with significant net inflows into ETFs and increased demand from accumulator addresses. However, ETF flows slowed towards the end of March, and some analysts suggest recent price surges may be leverage-driven. A daily close above $67,000 is seen as a positive short-term indicator for the uptrend.

(Source：Cointelegraph)