Digital Asset Market Shows Signs of Recovery Amid Structural Changes

According to Foresight News, Wintermute has indicated that despite initial setbacks due to AI market stagnation and subsequent impacts from the Federal Reserve's adjustments, the digital asset market's internal structure now appears healthier. Major cryptocurrencies are demonstrating clearer relative strength, with market sentiment fully cleared and excess leverage largely dissipated. The total open interest in perpetual contracts has decreased from approximately $230 billion at the beginning of October to around $135 billion today, primarily due to the deleveraging of long-tail assets and the withdrawal of systematic funds. This shift has redirected market activity back to the spot market, where depth and liquidity have exceeded expectations during a quiet holiday week. With leverage significantly reduced and capital flows dominated by the spot market, recovery tends to be more orderly compared to the mechanically driven short squeezes seen earlier this year. Negative funding rates and net short positions in perpetual contracts have also lowered the risk of further passive liquidations. If the macroeconomic environment stabilizes, this could provide the market with more breathing room. The upcoming trading days will set the tone for entering the final month of the year, but after weeks of macro-driven pressure, conditions for market consolidation are finally in place.