The easing expectation is becoming an invisible hand driving the crypto market.

As the Federal Reserve accelerates rate cuts, the yields on traditional financial assets are being noticeably suppressed—treasuries, bank deposits, and other once-stable sources of income become dull. Consequently, funds make rational choices: shifting towards higher-risk but potentially more lucrative assets, with Bitcoin benefiting as a result. This is not only a change in psychological expectation but also a real flow of liquidity. The loose market environment directly elevates the valuation foundation of the entire cryptocurrency sector.

But the technical reversal is the real factor that changes the market rhythm.

Looking back at October 2025: Bitcoin started to decline from its all-time high, and by December, it was long stuck in a oscillating downtrend. The bears seemed to have gained the upper hand. It wasn’t until January 2026 that the situation began to loosen significantly.

Several key signals appeared simultaneously. First, Bitcoin broke through the psychological threshold of $90,000, triggering a technical rebound. Second, net outflows of Bitcoin from exchanges surged—indicating spot supply was decreasing and selling pressure was drying up. Additionally, long-term holders began re-entering the market, suggesting a gradually forming consensus on the market bottom. The continued rise in rate cut expectations further provided strong support for this rebound.

These conditions stacked together, making January a natural window for a trend reversal. This is not a coincidence but a resonance of macro environment, capital flow, and technical factors occurring simultaneously.