Analysis: Market narrative shifts from interest rate cuts to rate hikes, Bitcoin's rally fades.

CoinFeed reported on May 20th that, according to Finance Feeds, a comprehensive intelligence report released by Wintermute indicates that global financial markets are undergoing a large-scale macroeconomic repricing, with market narratives shifting from discussing the timing of interest rate cuts to preparing for interest rate hikes. Bitcoin briefly broke through $83,000 before falling sharply, erasing most of its gains within a week, while major altcoins experienced double-digit declines. Wintermute points out that the previous price breakout was not driven by spot demand, but rather by a short squeeze in the perpetual futures market. Bitcoin futures open interest increased by $10 billion to $58 billion in a month, but spot trading volume fell to a two-year low. When Bitcoin broke through $80,000, a large number of short positions were liquidated, triggering a brief buying surge, but failing to form a structural bottom. Continued outperformance of CPI data and increased uncertainty surrounding the nomination of the Federal Reserve Chairman exacerbated market anxiety.