Bitcoin Rises 1.9% Amid Iran Peace Deal, But Wintermute Warns Rally Faces Trap Without ETF Demand

According to Wintermute, Bitcoin rose 1.9% this week as May U.S. consumer inflation came in at 4.2% year-over-year and Iran conflict risks eased following the reopening of the Strait of Hormuz. Core inflation declined to 2.9%, signaling price pressures were driven more by energy than broader wage and services growth.

However, the crypto market maker warned the recovery remains fragile and lacks sustained capital inflows. Digital asset treasury AUM fell to $140 billion from $220 billion, while Bitcoin ETFs recently posted their longest outflow streak since launch. Without fresh demand from ETFs, stablecoins, or digital asset treasury companies, any rally risks becoming another trap, Wintermute said. The firm expects the Federal Reserve's June 19 projections to be the next critical test for sustaining the bounce.