The Russell 2000 index reached a new all-time high in January, signaling increased investor appetite for riskier assets. This shift has strengthened optimism for an altcoin market recovery and potential gains ranging from 20% to 5x in Q1 2026. Elevated long/short ratios among altcoins and Binance netflow data suggest selective accumulation, indicating that while some altcoins may rally strongly, others could face selling pressure.