Wintermute: Crypto assets may have entered a bottoming-out and upward transition phase, with sentiment showing clear signs of recovery

ChainCatcher reported that Wintermute released a crypto market brief, stating that market sentiment has warmed up and risk appetite has rebounded. Bitcoin (BTC) is still fluctuating within the $105,000–$107,000 range and remains resilient, but to drive a broader altcoin rally, BTC may need to approach its historical highs. In the short term, US regulatory and political news will become new drivers of volatility.

The market tone this week has significantly improved compared to last month. As the October sell-off has settled, investors are repositioning into selective risk assets. Trump's proposal of a "$2,000 tariff rebate" briefly boosted risk sentiment, while the easing of the US government shutdown and weaker macro data also provided support for the market. However, capital inflows remain limited, and crypto assets are still the weakest performing asset class.

By sector, DePIN, L2, AI, and DeFi sectors led the gains, but the overall market breadth remains narrow, with a few strong coins accounting for most of the gains. Funds are still concentrated in major coins, and the pursuit of altcoins lacks sustainability.

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