Market sentiment has finally warmed up. BTC surged by 4.5% yesterday, and the logic behind this rally is actually quite clear.

First, let's look at the capital side. After four consecutive days of ETF activity last week, there has been a frenzy of buying in the past two days, indicating that the shakeout has come to an end. In other words, the signal from large capital inflows is very obvious—they are rebalancing their holdings.

Next, let's examine the macro perspective. The CPI data was released at 2.7%, perfectly within expectations, essentially resolving the inflation concern. Although the probability of a rate cut in January is low, the resolution of this uncertainty is itself a positive sign. The Federal Reserve now has more room to maneuver with its easing policies. Increased policy certainty provides the market with breathing room.

Most notably, the Senate's "CLARITY" bill has made substantial progress. What do big capital players lack the most? It's this "certainty." As regulatory frameworks become clearer, compliance narratives can become the foundation of this long-term bull run—this has profound implications for the entire ecosystem's development.

On the data front, the FGI panic index has risen from low levels to 48, finally exiting the panic zone, and sentiment has normalized. Interestingly, the funding rate is only 0.004%, which is quite cold, indicating that there is no bubble buildup in the short term. Once a trend is established, a pullback is an opportunity—those shaken out often regret it later.