Wintermute: Crypto assets may have entered a transitional phase of bottoming out and moving upwards.

Wintermute released a crypto market briefing stating that market sentiment has improved and risk appetite has rebounded. Bitcoin is still fluctuating between $105,000 and $107,000, showing resilience, but for it to drive a broader altcoin rally, it may need to approach its all-time high. In the short term, US regulation and political news will be new drivers of volatility. The market tone this week is significantly better than last month. With the dust settling on the October sell-off, investors are repositioning themselves in selective risk assets. Trump's proposed "$2,000 tariff rebate" briefly boosted risk sentiment, while the easing of the US government shutdown and weakening macroeconomic data also provided support. However, capital inflows remain limited, and crypto assets remain the weakest performing asset class. Looking at individual sectors, DePIN, L2, AI, and DeFi sectors led the gains, but the overall market breadth remains narrow, with a few strong coins bearing the brunt of the gains. Funds are still concentrated in mainstream coins, and the pursuit of altcoins lacks sustainability. Overall, the market structure is improving, and sentiment is clearly recovering. Crypto assets may have entered a transitional phase of bottoming out and moving upwards. If BTC can break through its previous high first, funds are expected to spread again, driving a broader rebound in altcoins.