The Daily Drip

✅ Top Takeaways

• BTC joins the risk rally: Bitcoin climbs above $95,500 and finishes near $96,976 as softer December core CPI at 2.6% and progress on the CLARITY Act spark the strongest three‑day run in weeks.
• ETF firehose turns back on: U.S. spot BTC ETFs post their biggest single‑day inflow in three months, adding over $750M and reversing the early‑year outflow streak.
• Rotation, not full alt‑season: ETH, SOL, and select privacy coins gain ground while XRP cools and meme‑adjacent majors like DOGE and ADA still trade more like tactical bets than a broad altcoin melt‑up.

📰 Crypto Market Summary

• BTC breakout on CPI + CLARITY: Bitcoin trades as high as $96,348 and ends near $96,976, up about 1.7%, after December’s core CPI eases to 2.6% and bipartisan work on the CLARITY Act signals a more predictable U.S. market‑structure path.
• ETF inflows flip the script: U.S. spot Bitcoin ETFs attract roughly $753.7M in net inflows — led by Fidelity’s FBTC (~$351M), Bitwise’s BITB (~$159M), and BlackRock’s IBIT (~$126M) — marking the strongest day in three months and a clear shift away from year‑end de‑risking.
• Shorts caught offsides: The move to a two‑month high triggers a sharp squeeze, with about $290M in BTC shorts and more than $600M in crypto shorts liquidated over 24 hours as price finally participates in the broader risk‑asset rally.
• ETH tracks, then lags: Ether briefly outperforms with intraday gains above 5% before settling near $3,347 (about +0.7%), pushing the ETH/BTC ratio roughly 3% higher year‑to‑date and coinciding with about $130M in ETH ETF inflows that hint at early rotation into large‑cap alts.
• Corporate balance‑sheet bet grows: Strategy shares jump more than 10% above $189 after the company discloses a 13,627‑BTC purchase at an average of $91,519 (~$1.25B), taking its holdings to 687,410 BTC and reinforcing the case that some corporates are treating Bitcoin as a long‑term treasury asset.

📊 Sentiment Dashboard

🔢 Market Performance

• BTC and ETH now sit more than 10% and 12% higher on the year, respectively, reflecting a steady grind higher rather than a parabolic blow‑off.
• SOL, ADA and DOGE remain among the strongest YTD performers in the large‑cap basket, consistent with targeted risk‑on behavior rather than indiscriminate altcoin buying.
• XRP and BCH lag on a weekly basis despite solid YTD gains, showing how leadership can rotate rapidly as narratives and technical levels evolve.

💰 Funding & Institutional Moves

BTC ETFs add roughly $753.7M in a single session and ETH products pull in another $130M, the strongest joint inflow in about three months and a clear shift from the cautious tone that dominated late 2025 and early January.

Strategy’s $1.25B purchase of 13,627 BTC at an average price of $91,519 takes its holdings to 687,410 BTC, reinforcing the role of corporate treasuries and listed vehicles as important marginal buyers when macro and regulatory winds align.

Signal: institutions appear more comfortable adding size when there is a combination of macro relief, supportive policy signals and price confirmation above recent ranges.

🌍 Macro & Geopolitics Watch

December core CPI eases to 2.6% from 2.7%, bolstering expectations for rate cuts later in 2026 and helping fuel a broader risk‑asset rally that now includes crypto after weeks of lagging performance.

Gold and silver both hit fresh highs, with silver briefly trading above $90 for the first time as geopolitical tensions and ongoing concerns about Federal Reserve independence sustain demand for inflation hedges alongside Bitcoin.

Macro lens: the combination of softer inflation, firmer rate‑cut odds and elevated geopolitical risk supports the narrative of diversified hedges — with metals and BTC often moving together when policy uncertainty spikes.

🎟️ Ecosystem, Builders & Flows

• Large caps Solana adds about 1.17% to trade near $147, extending its steady leadership run, while XRP slips around 0.75% to $2.15 after strong early‑year gains, highlighting rotation rather than a full‑blown altcoin season.
• Privacy Monero and Dash post outsized gains on speculative momentum, underscoring how narratives around privacy and censorship resistance can draw capital during periods of regulatory focus and political tension.
• Memes & majors Dogecoin and Cardano remain under weekly pressure despite positive YTD performance, suggesting that traders are being more selective with high‑beta exposure even as majors break to new local highs.

🏛️ Policy & Market Structure

The Senate Banking Committee releases the draft Digital Asset Market Clarity Act, classifying tokens with ETFs live by January 2026 — including XRP, Solana, Dogecoin, Hedera and Chainlink — as non‑ancillary assets under CFTC oversight rather than SEC securities rules.

The bill’s markup is scheduled for this week before a full Senate vote, raising the prospect that some of the longest‑running jurisdictional disputes could finally be resolved and offering a clearer path for exchanges, issuers and institutional participants.

Regulatory lens: while details and implementation timelines still matter, each incremental step toward clarity tends to reduce perceived headline risk and can make ETF, corporate and on‑shore institutional participation easier to justify.

⚡ Risk & Market Lens

A powerful three‑day BTC rally, large ETF inflows and major short liquidations can leave positioning stretched in the near term, especially if macro or policy headlines disappoint.

What to watch: whether BTC can hold the mid‑$90Ks after the squeeze, how ETH and SOL perform if Bitcoin consolidates sideways, and whether progress on the CLARITY and Digital Asset Market Clarity bills continues without major amendments that surprise the market.

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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.