[DigitalToday reporter Yoonseo Lee (이윤서)] Bitcoin has hit its highest level in weeks, but market maker Wintermute judged the rebound as a short-term relief rally rather than a structural shift higher.

On July 7, blockchain media outlet Decrypt reported that Bitcoin rose about 8 percent over the past week to trade in the $63,500 range. It briefly touched a two-week high above $64,500 intraday on July 7.

Wintermute said in a recent market report the move reflected a combination of an easing macro environment, a dovish tilt from the U.S. Federal Reserve and improved sentiment around Ethereum and institutional adoption. "This looks like a typical relief rally," it said, adding there was no need to invoke a bigger narrative to explain the rebound.

A change in fund flows for spot Bitcoin exchange-traded funds was cited as a direct backdrop to the market rebound. Spot Bitcoin ETFs ended 10 straight trading days of outflows last week and saw inflows of more than $222 million on July 2. They extended the inflow streak on July 7, taking in more than $265 million.

Wintermute drew a line, saying it was too early to declare a trend reversal on signals of this scale alone. "If ETF inflows continue, it can be read as the start of a real reversal," the company said, cautioning the move could be closer to one-off flows or a short squeeze. "Until broader money flows actually turn, it has a stronger relief character than a structural change," it added.

The view also ties to the fact that the market remains far below its previous peak regardless of the scale of the price recovery. Despite the recent rebound, Bitcoin is still about 50 percent below its record high of $126,080 set in October last year. Prices could rise further in the short term, but without confirmation that inflows go beyond a temporary rebound, the market's interpretation may also be limited.

Attention has therefore narrowed to the continuity of ETF inflows. With shifts in the macro environment and the tone of monetary policy acting favourably, whether institutional money comes in steadily for more than a few days remains a variable that will determine the nature of Bitcoin's rebound.

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