The two weeks at the start of the year have seen a vigorous rally in the crypto market. On January 14th, Bitcoin didn't slow down from the opening—surging over $5,000 in a single day, firmly breaking through the $98,000 mark, with a daily high approaching $96,000. Behind the 4.7% increase is a complete reversal of market sentiment. Ethereum followed suit with a 7.2% surge, holding the $3,300 level; Dogecoin, Solana, and other mainstream coins took turns climbing higher, each gaining over 8%. Privacy coins were even more extraordinary, hitting new all-time highs. The total market capitalization of global cryptocurrencies increased by hundreds of billions of dollars within 24 hours, regaining the $3.1 trillion level. Short sellers were liquidated for over $200 million during this rally, and the FOMO atmosphere in the market has become almost palpable.

But this rally didn't appear out of thin air as a game of hot money. The true driving forces come from two resonating dimensions—positive signals in macroeconomic fundamentals and a substantial shift in the regulatory environment.

Talking about the direct trigger, it all started with the December CPI data released by the U.S. Department of Labor on January 13th. This data sent a long-anticipated signal to the market: the overall CPI year-over-year was 2.7%, in line with expectations; but core CPI was only 2.6%, lower than the market forecast of 2.7%. The month-over-month core increase narrowed to 0.2%. In other words, inflation is clearly cooling down. The market immediately interpreted this as a clear signal—inflation has peaked. The Federal Reserve's rate cut expectations for 2026 were also adjusted, rising from the previous "at most one" to "more than two." The valuation logic of risk assets was reactivated at this moment. As the ultimate test of risk appetite, cryptocurrencies were the first to benefit from the return of liquidity.