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

Foresight News reported that Wintermute stated in a post that after weeks of intense volatility, the market finally feels more balanced. Cryptocurrency remains the worst-performing cross-asset class, but the tone has changed: the sell-off in October now seems to be in the past, and selective risk-taking is returning. The rebound in DePIN, L2, and AI-related sectors indicates a willingness to engage with the market; however, market breadth remains limited and the narrative is still unstable.

As for the next phase, mainstream coins need to take the lead. History shows that only when bitcoin trades near its highs do altcoins follow. Currently, bitcoin is priced at around $105,000 (down 16% from its all-time high), and this rotation led by mainstream coins has not yet been triggered. This does not look so much like stagnation, but rather a turning point: market structure is clearer, the macro environment is favorable, and the market feels ready to build momentum again. With headlines about the US potentially revisiting regulatory policies expected soon, the next round of volatility may come from policy and political factors rather than market positioning.