Wintermute: Market sentiment has improved, and the next round of volatility may come from policy and political factors

According to Foresight News, Wintermute posted that after weeks of severe volatility, the market finally feels more balanced. Cryptocurrencies remain the worst-performing cross-asset (class), but the tone has changed: October’s sell-off appears to be a thing of the past, and selective risk (investing) is returning. The rebound in DePIN, L2 and AI-related sectors shows that the market is willing to engage, however the market breadth remains limited and the market narrative remains unstable.


As for the next stage, mainstream currencies need to play a leading role. History shows that only when Bitcoin trades close to its highs do altcoins follow suit. With Bitcoin currently trading around $105,000 (down 16% from its all-time high), this rotation (led by mainstream coins) has yet to be triggered. This looks less like a stagnation and more like a transition phase: the market structure is clearer, the macro environment is favorable, and the market feels ready to build momentum again. With headlines about a potential reexamination of regulatory policies in the United States looming, the next wave of volatility may come from policy and political factors rather than market positioning.

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