Wintermute: Oversupply and token unlocking drag down altcoins; mainstream coins receive support from spot buying, but derivatives dominate price discovery.

According to an article published on the X platform by Odaily Planet Daily, Wintermute stated that as the holidays approach, the market structure continues to narrow, with Bitcoin's dominance rising. Altcoins continue to underperform due to oversupply and a flurry of token unlocking events. Internal flow data shows buying pressure on mainstream coins, with institutional funds consistently being the source of buying since the summer, while retail investors are rotating back from altcoins to mainstream coins.

While spot buyers provide a stabilizing foundation for the market, price discovery still occurs through derivatives, resulting in a coexistence of net buying in major cryptocurrencies and intraday plunges triggered by leveraged liquidations. Furthermore, traditional financial institutions are steadily entering the crypto space, which is expected to provide support for prices in the medium term. In the short term, the market will continue to fluctuate due to thin liquidity, with BTC and ETH continuing to act as the main risk absorbers.