Hey there,

Welcome to the 17th edition of the Fiat Bridge Newsletter.

If you're dipping your toes into crypto without being a full-time trader, today's edition is tailored for you. The market's in a holding pattern, with Bitcoin hovering around $92,000, up 1.7% in the last 24 hours, but stuck in a tight range between $90,000 support and $94,000 resistance.

Volatility is on the horizon with the US CPI data release tomorrow, which could influence Fed rate cuts and pressure riskier assets, such as crypto.

Over on Crypto Twitter, the buzz about regulatory delays shaking confidence, Eric Adams' messy NYC Token launch sparking rug-pull memes, and Monero's privacy surge stealing the spotlight.

We'll unpack the top stories with alpha insights, think new token plays, portfolio tweaks, and macro signals, to help you spot opportunities early on.

Let's dive in.

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Now let’s get to the top stories of the day.

The Senate Agriculture Committee pushed back the markup of its crypto market structure bill to the last week of January, needing more time for bipartisan buy-in after weekend talks.

Chairman John Boozman cited "meaningful progress" but emphasized broad support. This bill clarifies SEC and CFTC roles, potentially boosting market clarity.

Alpha: Delays could stall altcoin rallies, but passage might unlock DeFi growth. Watch for amendments on ethics and stablecoins. Draft bill here.

The Digital Asset Market Clarity Act (CLARITY Act) draft prohibits yields on stablecoins just for holding but greenlights activity-based rewards like staking or liquidity provision. This compromise addresses bank concerns over unregulated deposits while fostering crypto innovation. DeFi gets protections for developers, shielding them from intermediary rules.

Alpha: Stablecoin farmers, pivot to active strategies; there are many yield opportunities. Regulatory green light might draw TradFi inflows; tweak portfolios toward compliant DeFi tokens like UNI or AAVE.

Former NYC Mayor Eric Adams dropped the Solana-based NYC Token to fund anti-hate initiatives and scholarships, with 1B total supply and 70% in reserves.

Price tanked 80% post-launch, with $3.4M liquidity allegedly pulled by a deployer wallet, sparking rug-pull claims. The top 5 wallets hold 92%, super centralized.

Alpha: High-risk memecoin play; avoid unless you're scalping volatility. For safer bets, eye established tokens, but steer clear of hype-driven launches.

Ethereum co-founder Vitalik Buterin says ETH must pass a 'walkaway test', survive without ongoing developer input, like a hammer that works forever. Quantum resistance, ZK-EVM scaling for 1,000s of TPS, and robust gas models would be some of the fixes.

Alpha: This could solidify ETH as a long-term hold, reducing trilemma risks. If you're underweight ETH, consider adding on dips, and aim for decentralized stablecoins to hedge.

Bitmine added 24,266 ETH last week, pushing holdings to 4.17M (3.4% of supply) valued at ~$13B, plus 193 BTC and $988M cash. Chairman Tom Lee eyes a 6M ETH target and more staking (1.26M ETH staked).

Alpha: Corporate ETH hoarding signals confidence, could spark a rally if staking yields rise. Dip into ETH ETFs or stake via platforms like Lido for passive income without full custody hassles.

MicroStrategy bought 13,627 BTC at $91,519 average, boosting holdings to 687,410 BTC (cost basis $51.8B). Funded via equity sales, this cements their BTC treasury play.

Alpha: Track $MSTR stock as a BTC proxy. For your portfolio, if BTC's range-bound, consider averaging in below $90K, pair with gold for diversification amid macro uncertainty.

Crypto custodian BitGo launched its IPO, offering 11M shares at $15-17 each to raise up to $201M, valuing at $1.96B. With $90B under custody, it'll list as BTGO on NYSE.

Alpha: Custody boom ahead signals maturing market. Buy dips in custody-linked tokens like FIL; tweak portfolios toward secure storage plays if you're expanding crypto exposure.

21Shares' BOLD ETP launched on LSE, blending BTC and gold in a risk-weighted portfolio. Physically backed, it's returned 122.5% since 2022.

Alpha: Perfect hybrid for hedging, lower volume than pure BTC. UK/EU folks, add to diversify; US equivalents like GBTC + GLD could mimic for similar alpha.

Monero (XMR) spiked 16% to $686, topping a new all-time high as privacy coins rally on regulatory scrutiny fears. ZEC is also up 2% to $404.

Alpha: DOJ probe into Fed's Powell boosts non-sovereign assets like XMR. If you're privacy-focused, allocate 5-10%, trade the momentum, but watch delisting risks.

Trump-linked WLFI launched lending on World Liberty Markets using USD1 ($3.4B backed) as collateral for ETH, BTC, USDC, etc. Plans include RWAs and prediction markets.

Alpha: Airdrop farming potential here, lend stablecoins for yields. Macro tie-in could amplify if Trump pushes crypto-friendly policies.

That's the wrap on today's alpha-packed stories. If these insights sparked ideas, tweak your portfolio, maybe add some ETH staking or privacy plays. Drop me a line on X @chetankale_ with your thoughts, and subscribe for more insights.

Stay sharp out there!