Global markets are reacting sharply to the latest political and economic developments in the US and Asia. The nomination of a hawkish Federal Reserve chair has sparked concerns about a shrinking balance sheet, which typically removes the "cheap money" that fuels speculative assets. Simultaneously, the recent landslide election victory in Japan has bolstered the Nikkei, creating a divergence where traditional equities show strength while digital assets face sell-offs. This shift is compounded by record outflows from spot ETFs, totaling over $3 billion in January alone. Investors are now hyper-focused on upcoming inflation data (CPI) and retail sales reports, which will likely determine if the current market bottom holds or if a deeper correction is on the horizon.