Core Insights - Bitcoin is stabilizing after recent volatility, with a price increase of 5.6% from a low of $82,100, attributed to a significant shift in Federal Reserve policy expectations [2] - Select altcoins, particularly Ethena and World Liberty Financial, are experiencing notable gains, with Ethena up 7.3% and WLFI up 36% since its November 21 low [1][2] Altcoin Performance - Ethena's rise is linked to its stablecoin-driven model and yield mechanics, making it appealing for DeFi returns [5] - WLFI's performance indicates strong demand in a cautious market, highlighting the influence of high-profile narratives [1][5] - Other altcoins like Bittensor and Quant have also shown gains between 5% and 7% [1] Market Dynamics - The current market is characterized by selective risk-taking, with capital rotation favoring projects with real utility and strong fundamentals [4] - The trend of targeted investment is evident in the regulated altcoin space, with steady inflows into Solana and XRP ETFs despite broader market uncertainties [6] - Analysts suggest that this selective optimism will continue, rewarding projects demonstrating real traction and sustainable demand [7] Economic Indicators - The likelihood of a December rate cut by the Federal Reserve has increased significantly, from approximately 30% to over 80% [2] - On the Myriad prediction market, the probability of a 25bps rate cut has risen from 82% to 86% in a single day [3]