The Daily Drip

✅ Top Takeaways

• BTC reclaims 90K on policy hopes: Optimism around a Senate crypto market‑structure vote lifts Bitcoin back above $90,000 even as ETF flows show net outflows.
• ETH leads majors back over 3K: Ether’s 4% move through $3,000 reflects renewed risk appetite in large caps, though positioning is still cautious into the Fed decision.
• Macro keeps center stage: A weaker dollar, gold above $5,300 and copper strength all scream “hard‑asset trade,” with crypto now trying to reattach itself to that narrative instead of trading purely as high‑beta tech.

📰 Crypto Market Summary

Bitcoin reclaimed the $90,000 level, trading at $90,075 with a roughly 2% gain in 24 hours, driven by growing optimism around U.S. crypto regulation. The Senate Agriculture Committee is scheduled to vote Thursday on a crypto market structure bill that would clarify regulatory jurisdiction over digital asset markets.

The US Dollar Index fell to 96.2, its lowest level since February 2022, down over 11% in the past year. President Trump's dovish comments dismissing dollar weakness concerns, speculation about Fed chair replacement, and geopolitical tensions have intensified the broader 'Sell America' trade.

Gold futures surged past $5,300 per ounce, up 20% year-to-date, driven by the weakening dollar and safe-haven demand amid trade tensions and geopolitical uncertainty. The debasement trade has investors fleeing fiat currencies and bonds, with analysts at BMO now targeting $8,650 by 2027.

Ether gained 4.2% to reclaim the $3,000 level at $3,032, outperforming Bitcoin as traders positioned ahead of the Federal Reserve meeting. The move reflects renewed risk appetite in crypto markets despite ongoing concerns about labor market softness.

XRP is trading at $1.91, up 0.07%, consolidating near critical support at $1.77 on the 3-day chart. With liquidation clusters between $1.80-$2.05, analysts expect potential volatility, though the longer-term bias remains bullish as long as $1.77 holds.

Solana declined to $125.88, down 0.90%, underperforming major cryptocurrencies as risk-off sentiment persists in certain altcoin segments. The pullback comes as investors continue favoring precious metals over some digital assets in the current macro environment.

Copper futures rose 2% to $5.98 per pound, reversing prior session losses as the weaker dollar made commodities more affordable. Growing retail investor interest and structural demand tied to renewable energy, electrification, and AI infrastructure provided additional support.

The Federal Reserve is widely expected to hold rates steady at 3.5%-3.75% on Wednesday, with 97% probability priced by futures markets. Investors are focused on Chair Powell's tone regarding the 4.4% unemployment rate and whether dovish signals could support risk assets or delay rate cuts.

🌍 Policy, Metals & Dollar

• Regulation narrative grows up: A Senate Agriculture Committee vote on a market‑structure bill would be the first major attempt to codify CFTC/SEC roles for spot markets, giving institutions clearer guardrails around custody, listings and surveillance.
• ‘Sell America’ vs digital assets: With the Dollar Index down double‑digits over the past year and Trump downplaying currency weakness, macro funds are leaning into gold, silver and copper; today’s BTC pop is the first time in weeks crypto has tried to ride that trade instead of lagging it.
• Hard‑asset basket broadens: Copper’s strength — tied to renewables, EVs and AI data‑center demand — shows that the hard‑asset bid is no longer just about crisis hedging; it’s increasingly about long‑term infrastructure and energy transitions, a narrative crypto wants to be part of.

If the Fed stays on hold but leans dovish, this “weak dollar + real assets” cocktail could keep working — the open question is how much of that flow crypto can actually capture.

💰 ETF Flows & Market Structure

Despite price strength, yesterday’s ETF tape showed about $211M in net outflows from crypto products, with roughly $147.4M leaving BTC funds and $63.6M exiting ETH vehicles — not exactly the profile of a euphoric breakout.

Even so, the S&P Cryptocurrency Broad Digital Asset Index climbed 2.37% on the day and now sits 2.27% higher year‑to‑date, signaling that spot buyers and derivatives desks are more constructive than headline ETF numbers suggest.

Desk take: fast money is using ETF redemptions to rebalance after the bounce, while on‑exchange liquidity and perps show a quiet shift from flat positioning toward modest long bias into the Fed announcement.

📊 Sentiment Dashboard

🔢 Market Performance

• BTC now shows a 2.39% year‑to‑date gain and a positive 7‑day return, finally breaking the short‑term pattern of rallies that faded within a week.
• ETH, BNB, ADA and DOGE are all green on a daily, weekly and YTD basis, underscoring how large caps and “blue‑chip” alts are leading this leg higher.
• TRX and BCH lag on a YTD basis relative to other majors, even though both have pockets of strength — a reminder that this rally is selective, not indiscriminate.

⚡ Risk & Market Lens

BTC over 90K, ETH back above 3K and a softening dollar would normally scream “risk‑on,” but negative ETF flows and lingering fear readings suggest this is more about positioning into policy catalysts than about full‑blown FOMO.

What to watch: the Senate’s market‑structure vote, Powell’s language around the unemployment rate and 2026 cuts, and whether gold’s momentum cools — all of which will determine if crypto can hold its new levels or if today’s move becomes another fade.

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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.