The recent cryptocurrency market has experienced a significant rebound, with clear positive signals in prices, sentiment, and capital flows.

**Price Trends Here**: Bitcoin is currently fluctuating between $93,500 and $94,100, while Ethereum remains stable around $3,200 to $3,300. The total market capitalization of the entire crypto market has surged past $3.29 trillion, and notably, 97 out of the top 100 tokens are rising. This widespread upward movement indicates that this rebound is not just a fleeting moment for individual coins.

**Sentiment Has Shifted**. After months of silence, the Cryptocurrency Fear and Greed Index has moved from the "Fear" zone to "Neutral" for the first time. What does this subtle change mean? The collective market mindset is gradually recovering from extreme pessimism.

**Institutional Funds Are Reflowing**. In the first two trading days of 2026, the US spot Bitcoin ETF has seen net inflows exceeding $1 billion. This continuous influx of capital demonstrates that major institutions and traditional investors are gradually regaining confidence in Bitcoin.

**Why Is It Rising? Here Are Some Drivers**: First, Bitcoin experienced deep overselling at the end of 2025, and the current rally is essentially a technical rebound. The market has recovered from extreme panic and is beginning to reassess asset values. Second, the steady inflow of institutional funds provides solid fundamental support for prices. Additionally, news of Venezuela’s former president Maduro’s arrest over the weekend sparked discussions about whether the government holds hundreds of billions of dollars in "shadow Bitcoin reserves"—though unconfirmed, this rumor has added some volatility and hot topics to the market. On the technical side, Bitcoin’s price has broken above the 50-day moving average for the first time since its correction last October, which is an important signal of a trend reversal in technical analysis.

**Funds Are "Shifting Places"**. The flow of hot money in the market has become interesting—previous Meme coins lacking real-world applications are cooling down, while investors are turning their attention to projects with tangible use cases. Among them, AI concept tokens performed notably, with Render Network surging nearly 20% in 24 hours, far outperforming the broader market.

**Risks to Watch**: Ethereum’s Layer 2 scaling network StarkNet experienced a roughly 4-hour outage on January 5, during which block production completely halted. This is the second major failure within less than four months for this network, and the development team has urgently deployed a fix. This serves as a reminder to investors that even leading scaling solutions carry stability risks.

**Next Focus**: Ethereum plans to execute the BPO2 upgrade on January 7, aimed at increasing data capacity, which could significantly reduce Layer 2 network costs and is worth looking forward to. Additionally, macroeconomic data releases such as the US Non-Farm Payrolls will also impact the entire risk asset market, including cryptocurrencies.