Wintermute: Encryption assets may be in a transition phase towards a bottoming out, with sentiment clearly recovering.

On November 11, Wintermute released a crypto market briefing indicating that market sentiment has improved and risk appetite has increased. Bitcoin (BTC) is still fluctuating in the range of $105,000–$107,000, showing strong performance, but to drive the altcoin market, BTC may need to approach historical highs further. In the short term, U.S. regulations and political news will become new fluctuation drivers. This week, the market tone has clearly improved compared to last month. With the October dumping settled, investors are re-positioning in selective risk assets. Trump's proposal of “$2000 tariff rebate” briefly boosted risk sentiment, while the easing of the U.S. government shutdown and weakening macro data also provided support to the market. However, capital inflows remain limited, and crypto assets continue to be the weakest asset class. Sector-wise, DePIN, L2, AI, DeFi, and other sectors are leading in gains, but the overall market breadth remains narrow, with a few strong tokens bearing the main increases. Funds are still concentrated in mainstream tokens, with a lack of sustainability in the chase for altcoins. Overall, the market structure is improving, and sentiment recovery is evident. Crypto assets may be in a transition phase from bottoming out to rising. If BTC can break through its previous high first, capital is expected to spread again, driving a broader altcoin rebound.