Wintermute: Market Still Looks Weak Short-Term After Binance Incident, $76,800 Is the Next Key Support

November 3 — Crypto market maker Wintermute said in its latest market report that last week's market direction was determined by the Binance hack incident rather than Fed and PCE data. Binance lost about $6.3 billion on October 29, reportedly linked to the North Korea-related TraderTraitor, and about $3 billion has been frozen. Liquidations after the incident reached $1.5 billion, of which about 85% were long positions. Wintermute believes the dip-buying funds after this decline came mainly from leveraged perpetual contracts, lacking spot buying and new capital support, and the market remains weak in the short term.

Wintermute said Bitcoin has broken below the key $80,000 level, and observing from around $78,000, the 50-week moving average at about $76,800 is the next support. Only if Bitcoin reclaims and holds $80,000, with buying coming from spot and ETF funds, would short-term caution end; if it loses the 50-week moving average, the view would turn further bearish.