The Daily Drip

✅ Top Takeaways

• BTC stabilizes after $60K scare:Bitcoin’s rebound from lows near $60,000 has cooled, with price now around $68.5K as traders weigh softer CPI at 2.4% against lingering fears of a deeper correction.
• ETH leads the downside:Ether dropped to roughly $1,960 and is underperforming BTC on both the day and the week, reflecting how fragile altcoin sentiment remains after recent liquidations and ETF outflows.
• XRP resilience stands out:XRP logged a double‑digit intraday jump over the weekend and is still positive on the week, supported by ongoing growth in tokenized real‑world asset activity on the XRP Ledger.

📰 Crypto Market Summary

Bitcoin climbed back above $70,000 on Saturday following cooler‑than‑expected U.S. inflation data, rebounding from early‑February lows near $60,000 as investors rebuilt rate‑cut bets and risk appetite improved.

Ether told a different story, sliding to about $1,955 and leading declines among major cryptocurrencies as traders rotated toward BTC and reduced exposure to higher‑beta altcoins amid ongoing macro uncertainty.

XRP briefly surged more than 10% in weekend trading as confidence in the XRP Ledger’s expanding tokenized‑asset recordkeeping footprint drew fresh interest, though the token is still slightly negative on the week.

Analysts note that roughly $5.8 billion in cumulative BTC ETF outflows over three months have largely come from tactical traders and hedge funds rather than long‑term holders, suggesting structural allocations remain mostly intact despite the volatility.

With the Crypto Fear & Greed Index stuck in “extreme fear” near levels last seen in the 2022 bear market, some long‑horizon models still point to possible downside tests toward the mid‑$40K area before a more durable recovery.

🌍 Macro & Policy Lens

Inflation, rate expectations and risk sentiment remain the dominant forces behind this week’s crypto price action.

• CPI supports gradual easing hopes: January’s 2.4% year‑over‑year print, versus 2.5% expected, nudged markets toward earlier rate‑cut timelines, giving high‑beta assets like BTC some breathing room after the early‑month drawdown.
• Risk appetite remains selective: While equities and crypto bounced on the data, positioning still looks cautious, with many investors preferring BTC over smaller tokens until macro visibility improves.
• On‑chain stress lingers: Recent weeks saw billions in realized BTC losses and one of ETH’s steepest weekly declines since 2022, leaving long‑term valuation models flashing mixed signals on whether a final capitulation is behind or still ahead.

For now, macro is providing a modest tailwind rather than a full‑blown rescue—rates expectations have improved, but not enough to erase the scars from February’s volatility.

💰 Flows & Market Structure

Weekend trading left spot ETF tape quiet, but the three‑month picture still shows roughly $5.8B in net BTC ETF outflows driven mainly by short‑term players rather than long‑term allocators.

• BTC ETFs: cumulative outflows signal active traders de‑risking, but on‑chain data still show larger holders broadly maintaining exposure rather than exiting en masse.
• Altcoin flows fragment: Ether products continue to lag after recent selloffs, while interest in RWA‑linked and XRP‑adjacent structures has held up better in relative terms.
• Weekend liquidity is thin: With major ETFs paused until Monday, price moves are increasingly shaped by derivatives positioning and spot market depth on offshore venues.

The S&P Cryptocurrency Broad Digital Asset Index was unchanged on the day due to the weekend and remains at approximately −22.90% year‑to‑date.

Desks describe a “two‑track” market: BTC is increasingly treated as the macro proxy, while ETH and the broader alt complex remain caught between structural themes like tokenization and the overhang of recent deleveraging.

📊 Sentiment Dashboard

Despite the rebound from $60K, sentiment remains stuck in “extreme fear” territory reminiscent of late‑bear‑market phases.

🔢 Market Performance

• BTC and ETH are both negative on the day and the week, with ETH’s deeper drawdown underscoring how quickly altcoin sentiment flipped after early‑year optimism.
• XRP, DOGE, BCH and ADA show a mix of weekly winners and losers, reflecting a market where selective narratives—like RWA tokenization and meme‑coin speculation—still create pockets of relative strength.
• Stablecoins such as USDT remain anchored near $1.00, keeping settlement rails functioning while traders decide whether this phase marks late‑cycle capitulation or the start of a prolonged consolidation.

⚡ Risk & Market Lens

The weekend tape shows a market caught between improving macro headlines and on‑chain signals that still allow for a deeper retest of support.

Key risks traders are watching: whether BTC can avoid a slide toward the mid‑$40Ks flagged by long‑term valuation models, how ETH behaves after one of its worst weekly stretches since 2022, and whether altcoin liquidity can recover without reigniting speculative excess.

For now, the path of least resistance looks choppy—macro is supportive at the margin, but positioning, sentiment and recent losses argue for patience and disciplined risk management rather than chasing short‑term moves.

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Disclaimer

This newsletter is for informational and educational purposes only and is not investment advice, solicitation, or an endorsement of any strategy or asset. H2cryptO does not warrant data accuracy or completeness.

Crypto assets are highly volatile; always consult professional advisors, use caution, and comply with local laws before making strategic, financial, or investment decisions.