Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are down 2% on Tuesday as as institutional confidence in digital assets remains strong, according to a new research report.

What Happened: Wintermute noted in a report that markets have largely stabilized after October’s washout, with sentiment improving and positioning reset, though participation remains selective.

Sector-wise, DePIN (+22%), Layer-2s (+13%), and AI tokens (+9.6%) led gains, but momentum remains narrow and fragile. Meme coins ended October positive, up just 4.6%, their smallest monthly gain.

The macro backdrop remains broadly supportive: rate cuts are underway, quantitative tightening has ended, and global liquidity is improving.

However, crypto still lags other risk assets, as capital remains concentrated in majors like Bitcoin and Ethereum.

Historically, altcoins only outperform once Bitcoin nears its all-time high, with BTC still about 16% below that level, Bitcoin is expected to lead near term.

Also Read: Bitcoin Holds $105,000 As Ethereum, XRP, Dogecoin Drop On Tuesday

Why It Matters: Institutional conviction in crypto remains strong despite October’s $20 billion market drawdown. A Sygnum survey of 1,000 global institutions found that 61% plan to increase crypto exposure, while 55% hold a bullish short-term outlook.

Nearly 73% cited higher long-term return expectations as their key motivation for investing.

Still, uncertainty lingers amid delays in major U.S. regulatory developments, including the Crypto Market Structure Bill and pending altcoin ETF approvals.

Sixteen ETF applications are currently awaiting review, but government shutdown–related delays have pushed timelines further into 2025.

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