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

Foresight News reports that after weeks of intense volatility, the market finally feels more balanced. Cryptocurrencies remain the worst-performing cross-asset class, but the tone has shifted: the sell-off in October seems to be behind us, and selective risk-taking (investing) is returning. The rebound in DePIN, L2, and AI-related sectors indicates a willingness to engage, but market breadth remains limited, and market narratives are still unstable. Moving forward, mainstream cryptocurrencies need to take the lead. History shows that altcoins tend to follow only when Bitcoin’s trading price approaches its highs. Currently, Bitcoin is around $105,000 (down 16% from its all-time high), and this rotation led by mainstream coins has not yet triggered. This doesn’t seem to be stagnation but rather a turning point: market structure is clearer, macro conditions are favorable, and the market feels ready to rally again. As headlines about the US potentially revisiting regulatory policies emerge, the next wave of volatility may stem from policy and political factors rather than market positioning.