This week's market performance has been quite impressive. As we enter the first full week of 2026, the market has shown many bright spots. Starting with PEPE's strong performance, the entire meme sector has been thoroughly activated. Yesterday and today, this heat has even spread to the entire altcoin field.

What I want to say is that it's now the altcoin season. However, this altcoin season is a bit interesting—it has negated previous expectations of sector rotation.

What is the current situation? It’s a collective rally. Not driven by a single coin’s long positions, but centered around meme coins pulling the market up, while the overall altcoin market is rising. This phenomenon is quite fascinating.

In contrast, Bitcoin has appeared quite stable these past two days. It hasn't been drained by altcoins nor has there been any spillover. Frankly, it hasn't risen enough to cause spillover. The current feeling is like climbing a small staircase step by step—steady and orderly, with no retracements. Although the total crypto market cap has seen net inflows, new capital isn't particularly large yet. The bulls are pulling positions, but the strength isn't very high; this upward movement is continuous and quite regular.

From this phenomenon, we can infer that the recent broad rally in altcoins is very likely funded by those who sold at last year's peak—they're back. The heat in PEPE has attracted funds waiting on the sidelines for opportunities, maintaining the momentum of the entire meme sector, and then spreading to the altcoin sector. This is a natural flow of funds.

Now, everyone's most concerned about: how long can this continue? How long is the lifecycle of the altcoin season? Is now a good time to jump in?

Those who got used to shorting last Q4 might tell you that a crash is imminent—an outright collapse. I don't quite agree with that view. The collective rise of altcoins is very likely because Bitcoin's bullish expectations have truly returned. Whether this is due to Federal Reserve policies or other factors, there's no need to pay too much attention now. The key point is that Bitcoin is currently in a major cycle correction phase based on technical indicators. A new year, new atmosphere—that's the best explanation. During this correction phase, the bearish trend can be said to be temporarily over.

Looking ahead, the first quarter will be a recovery period for Bitcoin, with the second quarter expected to accelerate toward ATH. And this recovery phase is precisely the safest stage of the altcoin season. During this time, everyone's funds are quite safe, and the coins that need to be rallied will continue to rally. PEPE's previous rally happened in this environment, and the same applies to other altcoins.

This bull market is really back. The bearish trend has officially ended.