At the beginning of the new year, the digital asset market has reversed the downturn from the end of last year, showing clear signs of recovery. Bitcoin and Ethereum have successively stabilized at key levels, driving a broad rebound of mainstream coins and ecosystem projects, and the entire market is exhibiting a long-lost vibrant atmosphere.

But in this rebound, I must repeat the most important point: do not use leverage trading. Really, don’t use leverage. This applies in any market condition.

So where does this rebound’s strength come from? I’ll break it down into three levels:

**Shift in Macro Liquidity**

The global economic environment is changing, and the market is beginning to anticipate looser liquidity. This expectation has attracted a large amount of long-term capital through compliant channels. This is not short-term speculation, but an adjustment in institutional-level capital flows.

**Practical Progress in Technology and Ecosystem**

Some projects are continuously iterating in areas like storage, cross-chain, and high-performance low-layer protocols, and are accelerating their application deployment at the institutional level. This means the market is re-evaluating their intrinsic value. Technological progress is not an empty concept but a tangible enhancement of competitiveness.

**Self-Adjustment of Market Structure**

After a deep consolidation in Q4 last year, many assets were oversold, with valuations deviating from fundamentals. When market demand is released, these assets tend to rebound collectively, which is a natural market self-healing process.

As investors, it’s even more important to stay clear-headed at this time. What’s the key? Stick to value-oriented investing, avoid high-leverage gambles, and steer clear of blindly following trends. You should focus on projects with real application scenarios and genuinely active ecosystems, rather than chasing hot trends. Reasonably allocate your holdings’ risk—neither go all-in nor miss out on opportunities.

Opportunities in the digital asset market are always present, but your principal and mindset are prerequisites for participating in this game. Becoming gradually wealthier is much more reliable than getting rich quickly.