Wintermute: Altcoins continue to perform poorly, while mainstream coins receive support from spot buying, but derivatives dominate price discovery

Wintermute posted on the X platform, stating that as the holidays approach, the market structure continues to narrow, and Bitcoin's dominance is rising. Due to oversupply and intensive token unlock schedules, altcoins continue to perform poorly. Internal flow data shows that there is buying pressure on mainstream coins, with institutional funds being a consistent source of buying since the summer, while retail investors are rotating from altcoins back to mainstream coins.

Although spot buyers provide a stable foundation for the market, price discovery still occurs through derivatives, leading to a coexistence of net buying of mainstream coins and intraday sharp declines triggered by leveraged liquidations. Additionally, traditional financial institutions are steadily entering the crypto space, which is expected to provide support for mid-term prices. In the short term, the market will continue to fluctuate under thin liquidity, with BTC and ETH continuing to act as the main risk absorbers.