Wintermute: Cryptocurrency assets may have entered a bottoming-up transition phase, with sentiment clearly improving

Wintermute released a cryptocurrency market briefing indicating that market sentiment is improving and risk appetite is on the rise. Bitcoin (BTC) is still oscillating in the range of $105,000 to $107,000, showing resilience, but to drive the altcoin market, BTC may need to approach historical highs further. In the short term, U.S. regulations and political news will become new volatility drivers.

This week, the market tone has significantly improved compared to last month. With the October sell-off settling down, investors are repositioning into selective risk assets. Trump's proposal for a "2000 USD tariff rebate" briefly boosted risk sentiment, while the easing of the U.S. government shutdown and weakening macro data also provided support to the market. However, capital inflows remain limited, and crypto assets are still the weakest asset class.

By sector, DePIN, L2, AI, and DeFi sectors are leading in gains, but the overall market breadth remains narrow, with a few strong coins accounting for the main increases. Funds are still concentrated in mainstream coins, lacking sustainability in the pursuit of altcoins.

Overall, the market structure is improving, and sentiment recovery is evident. Crypto assets may be in a transitional phase from bottoming out to upward movement. If BTC can break through its previous highs first, funds are expected to spread again, driving a broader altcoin rebound.