Today's market performance raises the question: "Is the altcoin bull market back?" However, despite some increases, this rebound seems insignificant compared to the previous declines. Most altcoins have already hit rock bottom, and a direct V-shaped recovery in the market is unlikely. Due to heavy selling pressure above after the drop, the upcoming market is more likely to be characterized by a prolonged period of consolidation and gradual recovery of market sentiment. Nevertheless, this fluctuation, compared to the stagnant market state, at least brings some active opportunities for investors.

Key data to focus on this week:

1⃣ US January CPI data

Release time: Tomorrow evening at 21:30

Impact analysis:

CPI higher than expected: May negatively affect the crypto market, as this could delay the Federal Reserve's rate cut plans.

CPI lower than expected: May positively affect the crypto market, as this could strengthen rate cut expectations.

Core logic: Rate cut expectations are usually related to a poor economic environment, while loose monetary policy often benefits the performance of risk assets.

2⃣ Trump Tariff Policy

Event: Trump will announce reciprocal tariff measures against several countries this week.

Impact analysis:

If tariffs increase, it may lead to a stronger dollar, which would negatively impact BTC and other cryptocurrencies priced in dollars.

Tariff policies could also trigger global trade tensions, further affecting market risk appetite.

Summary:

As long as there are no major negative news (such as CPI significantly exceeding expectations or an escalation of the trade war), market sentiment is expected to gradually recover, and the market may show a trend of consolidation and upward movement. Although a significant rebound is unlikely in the short term, the increased market activity provides investors with more trading opportunities.

Short-term strategy: Focus on the performance of strong cryptocurrencies in a consolidating market.

Long-term strategy: For value investors, the current low levels may be an opportunity to gradually position in quality assets, with a personal focus on $SOL and $LTC (EFT expectations) as the main positions.

Altcoins: Pay close attention to the rebound in the AI sector and the performance of SOL ecosystem assets like $RAY, which has shown significant support during this downturn, with attention on the strength of the rebound in the future.