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

According to a cryptocurrency market briefing released by Wintermute, Odaily Planet Daily, 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 improved significantly this week compared to 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, inflows remained limited, and crypto assets remained the weakest performing asset class.

Looking at individual sectors, DePIN, L2, AI, and DeFi sectors led the gains, but the overall market breadth remained narrow, with a few strong coins accounting for the majority of the increases. Funds remained concentrated in mainstream coins, and the pursuit of altcoins lacked sustainability.

Overall, market structure is improving, and sentiment is recovering significantly. 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 redistribute, driving a broader rebound in altcoins.