Jan 20, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Cooling CPI Relieves Market

Recent data indicated a stagnation or potential reversal in inflation progress, with a key measure of underlying price hikes — the core Consumer Price Index (CPI) — remaining unchanged for months. However, this trend shifted on Wednesday, as the Bureau of Labor Statistics reported a slowdown in the core CPI for the first time in months.

The CPI, which tracks price changes for commonly purchased goods and services, showed an overall increase of 0.4% from November 2024, lifting the annual rate to 2.9%. This rise was primarily driven by surging gas and food prices, with energy costs alone contributing to 40% of the monthly increase. Food prices also remained high, impacted by weather conditions and disease affecting key staples like meat and eggs.

Excluding volatility for food and energy prices, the core CPI only rose 0.2% from November, easing to 3.2% after being stuck at 3.3% since September 2024. Market reactions were positive, as traders hoped the Federal Reserve would continue its rate-cutting campaign.

While inflation has slowed since peaking at 9.1% in June 2022, the journey back to normalcy has been bumpy. Everyday item prices are now 21% higher than in 2021, straining household budgets, particularly for lower-income Americans. Though wages have risen faster than inflation over the past 20 months, they still lag behind pre-pandemic levels.

This latest CPI report, the last before President Biden transitions power to president-elect Trump, underscores the ongoing challenges in managing inflation, particularly for essential goods and services.

Weekly Crypto Highlight — Crypto Cases Drop Before Trump’s Inauguration

Digital Currency Group and its subsidiary, Genesis Global Capital, reached a settlement with the Securities and Exchange Commission (SEC) on Friday, indicative of a broader trend among cryptocurrency firms resolving regulatory issues as the Biden administration approaches its conclusion. Over the past week, multiple U.S. regulatory agencies — including the Commodity Futures Trading Commission (CFTC), the Justice Department and the SEC — have announced various settlements and charges across at least six cases involving digital assets, signaling a renewed focus on enforcement as the administration winds down.

During Biden's term, more than 100 enforcement actions were filed against crypto companies, reflecting heightened scrutiny of the industry. However, with president-elect Donald Trump set to take office, there’s an expectation of a paradigm shift in regulatory approaches. Trump, once a critic of cryptocurrencies, has appointed crypto-friendly officials to key positions and intends to prioritize legislation that supports the industry.

For many crypto firms, settling with regulators is seen as a strategic move. Legal experts note that such settlements allow these companies to close contentious chapters and redirect their efforts in a potentially more favorable regulatory environment. Jonathan Groth, a partner at DGIM Law, commented on the implications of the incoming administration, suggesting that support for extensive enforcement actions may diminish.

Recent high-profile cases include a $5 million fine against Gemini for regulatory violations and a $100 million penalty for BitMEX due to failures in 

 measures. Additional actions have targeted fraudulent schemes, and individuals involved in illegal cryptocurrency activities. As the regulatory landscape shifts, firms settling with agencies may be positioning themselves for a fresh start under a more accommodating regime.

Advanced

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Weekly Institutional Insights: Cooling CPI Relieves Market; Bitcoin Regains $100K Ahead of Trump’s Inauguration

Dive into HeyAnon, an innovative protocol launched by experienced DeFi builder Daniele Sesta, and merging DeFi interactions with AI agents.

 (DeFi) protocol designed to simplify DeFi interactions. By integrating conversational artificial intelligence (AI) with real-time data aggregation, HeyAnon empowers users to manage DeFi operations seamlessly. From 

 to tracking project updates and analyzing trends, HeyAnon combines natural language processing and actionable insights to redefine the DeFi user experience.

This article explores the emergence of DeFAI (DeFi + AI), HeyAnon’s groundbreaking features and its role in shaping the future of DeFi.

DeFAI is the birth child of DeFi and AI. It represents a groundbreaking evolution in blockchain technology, whereby AI agents are integrated into DeFi. This emerging sector goes beyond traditional AI applications, focusing on automating on-chain activities through autonomous trading agents, abstraction layers and AI-driven DApps.

The term gained traction during the rise of the AI agent meta, beginning with projects like 

 (GOAT), an innovation born from Andy Ayrey’s Truth Terminal experiment. 

This movement has spurred the creation of numerous AI agents and frameworks, eventually pushing the AI agent market to a peak 

 (as of Jan 15, 2025). Despite its overlap with AI agent concepts, DeFAI has carved out a distinct niche valued at $1 billion, emphasizing deeper blockchain integration. 

Unlike early AI agents, which primarily operated as bots posting on social media with limited on-chain utility, DeFAI agents can participate in blockchain activities. This shift indicates the prioritization of tangible applications, such as automated trading, staking and 

 is an AI agent network built to simplify DeFi interactions while providing users with unparalleled access to real-time information. By combining conversational AI with robust data aggregation capabilities, HeyAnon creates a seamless interface for managing DeFi operations.

Designed with user experience in mind, HeyAnon leverages natural language processing (NLP) to allow users to execute complex DeFi tasks through simple conversations. From automating bridging, swapping, staking and borrowing to monitoring market trends, HeyAnon streamlines operations that typically require advanced technical knowledge.

HeyAnon’s strength lies in its ability to aggregate data from diverse sources, such as X (Twitter), Telegram, Discord, GitHub and GitBook. It provides insights into project updates, community sentiment, development activity and price fluctuations, enabling users to make informed decisions with ease.

Essentially, HeyAnon aims to bridge the gap between technical complexity and user accessibility, improving the way we experience DeFi.

, a renowned figure in DeFi and the crypto market. Sesta is widely recognized for his past projects, including Wonderland (TIME), a decentralized reserve currency protocol that made waves during the DeFi 2.0 era.

HeyAnon empowers users to streamline their DeFi experience with the following features, while remaining informed, efficient and in control.

By leveraging advanced natural language processing (NLP), HeyAnon enables conversational interactions for managing DeFi operations. Users can perform tasks such as staking, swapping tokens or borrowing simply by engaging in a natural conversation with the platform. This intuitive interface eliminates the steep learning curve often associated with DeFi, making it accessible to both newcomers and seasoned users.

HeyAnon excels at consolidating real-time data from diverse sources, including X (Twitter), Telegram, Discord, GitHub and GitBook. By aggregating project updates, community sentiment, development activity and market data, HeyAnon provides users with actionable insights at a glance. For instance, it can monitor GitHub commits or X (Twitter) sentiment to keep users informed about a project’s health and progress.

Automation lies at the core of HeyAnon’s utility, simplifying the following complex DeFi tasks.

, in which several innovative projects are also making their mark. Following is an overview of some key players.

 is a prominent competitor that focuses on leveraging AI to simplify on-chain interactions.

 specializes in providing crypto market intelligence and automating the process of tracking market trends and interpreting data. 

 is an AI agent that aims to transform the way users interact with DeFi. It’s developed by 

, a company that builds infrastructure merging AI and blockchain capabilities. Orbit is available on over 100 blockchains, including Bitcoin, Ethereum and Solana, and across thousands of DeFi protocols.

The ANON token is central to HeyAnon’s ecosystem, serving governance, community benefits and treasury purposes. As the governance token for the Anon DAO, ANON grants holders voting rights to shape HeyAnon’s development, influence agent skills and determine platform features. Holders enjoy free and/or discounted AI agent services, and can actively participate in shaping the project's road map and priorities.

, ensuring transparent fund use within the DAO’s treasury. Further details can be found in 

HeyAnon is one of the most promising projects in the emerging DeFAI market, combining advanced AI capabilities with actual utility. Its innovative features — automation, cross-chain interactions and data aggregation — could position it as a leader in DeFi and AI innovation.

With a strong team and an experienced DeFi founder in Daniele Sesta, HeyAnon’s road map is set to drive community-led development and enhanced DeFi solutions.

Intermediate

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HeyAnon (ANON): Daniele Sesta’s New DeFAI Platform

Swiss bank PostFinance has partnered with Sygnum to launch Ethereum staking, allowing customers to earn passive income via Ethereum blockchain integration into its e-finance platform.

Daily Top Performer — Morpho Protocol (MORPHO)

The S&P 500 dropped 0.21%, ending a three-day rise, with tech losses offset by gains in utilities, real estate, and industrials. Gold prices rose above $2,700, driven by weak US retail sales, rising jobless claims, and dovish comments from Fed Governor Waller, which fueled expectations of rate cuts. Falling bond yields further supported the uptrend, with gold targeting $2,750. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.10%, with Bitcoin rising by 0.69% and Ether dropping by 3.34%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is MORPHO, which surged nearly 37.1% following the launch of Coinbase's seamless crypto-backed loans powered by Morpho infrastructure.

Morpho Protocol (MORPHO), founded in 2021, is a decentralized Ethereum-based lending platform with a P2P order matching system. It offers customizable markets and Morpho Vaults for various risk levels. Initially launched in 2022 for Aave and Compound, it introduced Morpho Blue in 2024 for flexible lending. Morpho Labs continues to develop Morpho while supporting the original Morpho Optimizers. 

, allowing users to borrow USDC against BTC via the Coinbase app. The product offers competitive rates, flexible terms, and a seamless experience. This move highlights the growing use of Morpho's infrastructure for onchain finance, with more institutions expected to follow suit.

Check Out the Latest Prices, Charts, and Data of 

 with Sygnum to launch Ethereum staking, allowing customers to earn passive income via Ethereum blockchain integration into its e-finance platform. Customers can start staking with a minimum deposit of 0.1 ETH, and rewards will be displayed alongside other crypto assets. The service is currently limited to Ethereum, with plans to expand to other cryptocurrencies in the future.

Yesterday, Bitcoin spot ETF flows totaled $98.2M, driven by $168.2M inflows from non-GBTC products, offset by a $70M outflow from GBTC.

. Wave 1 eligibility is now live, limited to specific Quai Discord roles, with more waves to follow. NFT holders might qualify for allocations, though it's not yet confirmed.

Beginner

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PostFinance Launches Ethereum Staking for Passive Income on E-Finance Platform

Top Hat is an AI-based token launchpad built on the Solana blockchain. Learn about how this project works in this article.

There’s currently a huge demand for token launchpads that allow everyday consumers to create their own 

 plans to meet this demand by pairing classic launchpad design with artificial intelligence (AI) technology. This exciting new product has the potential to make token creation more accessible and convenient than ever. If you're interested in learning more about Top Hat's design, check out this helpful guide.

Top Hat is an AI-based token launchpad built on the 

 blockchain. This user-friendly system requires no coding ability, and allows people to create personalized tokens and 

Not much is known about the team behind Top Hat. The project is a fairly new one, having just started in October 2024 and being made available to the public the next month. As of January 2025, its creators haven’t announced their identities. Instead, all of the communication from the Top Hat team 

 a Twitter/X account. Though this account hasn't revealed much about the creators' motivations or experience, it has disclosed that its team is focused on promoting AI and making Solana development fun and accessible.

Top Hat's goal is to provide the most user-friendly and low-effort experience possible. There’s a huge demand for launchpads, but many companies struggle to create one that can handle all of their potential users. By incorporating AI design, Top Hat hopes to reduce the burden of running a launchpad.

Top Hat’s other primary goal is to create a convenient space for people designing new cryptocurrencies and AI agents. Traditional web3 launches often require users to have advanced technical knowledge — such as the ability to code. Top Hat does away with such requirements, and instead guides users through a convenient interface. AI prompts, simple wording and clear menus make it much easier for the average person to create their own Solana-based token.

Top Hat runs on a Solana base integrated with Telegram, X and other social media sites. Solana is used to manage the cryptocurrency side of the website, generate tokens and keep track of individual transactions. 

Meanwhile, generative AI is used to create social media posts for each AI agent. This allows users' agents to develop their own personalities and socialize with each other. To guide users through the process of making AI agents, Top Hat employs the following mechanisms.

The manual build process allows people to create a customized, blockchain-based AI character. Simply link a Solana wallet, and follow the prompts from Top Hat as it asks for details about your desired personality, culture and goals for your character. A manual build also lets you create a new token and specify details such as token supply.

For those with a less defined concept, Top Hat also features a 

 setting. A user simply inputs their token contract address, and Top Hat's AI system will fill in all the details of the character for them. This can be useful for those who want to work with an AI agent but don't want to spend time designing the agent themselves.

Top Hat's creation options also include the ability to clone a public personality. Instead of defining a character themselves, users can simply enter the X account of a person, and the AI launchpad design will analyze and mimic that person's account. 

In just a few months, Top Hat has launched the public version of its site and acquired over 2,000 users. In 2025, Top Hat hopes to capitalize on its success by launching 

. This new and improved version of the site will include a full rebrand and more features for users to try out:

The HAT token plays a critical role in the Top Hat ecosystem. It's currently the native token for the site. Top Hat plans to add additional utilities in the future, such as fee payments and/or voting usage. The HAT token is 

, and the project’s owners plan to use the resulting revenue to buy back and burn 

There’s a maximum supply of 1 billion HAT tokens and a current total/circulating supply of just under 990 million. Because HAT is meant to be as accessible as possible, it features no predetermined distribution. Instead, anyone who wishes to acquire HAT can buy it directly from the market.

Looking to trade Top Hat tokens? Bybit now offers the HAT/USDT Spot trading pair. To get started, you’ll need to first create a Bybit account, fund it with cryptocurrency and navigate to the 

The Top Hat project is an exciting look at how crypto, AI and web3 technologies can be combined. It's grown rapidly, and has already acquired many users. This optimistic outlook is supported by HAT’s performance. Since its debut, its price has primarily stayed in the $0.05 to $0.10 range. There have been some notable price spikes, and a steady price increase that indicates opportunities for investors to profit. 

HAT certainly has some positive qualities, but keep in mind that this product is lacking in a lot of detail. Without knowing much about the team, or having a clearly defined idea of how the project’s technology runs, it's hard to say whether Top Hat is set up for long-term success. Therefore, it's a somewhat risky investment that investors need to approach cautiously. For best results, HAT should only be a small part of a diverse portfolio. Always 

 carefully before buying cryptocurrencies.

Through the power of AI, Top Hat makes it quick and easy to design custom, blockchain-based agents. These characters are capable of engaging with others on social media and managing complex plot lines. Thus, they have numerous applications for entertainment and meme coins. While Top Hat is still a new project that needs to fully prove its utility, it's already done a great job of appealing to a select group of web3 AI enthusiasts.

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Top Hat (HAT): Solana's First No-Code AI Agent Launchpad

Trading

Indicators

Bitcoin

The Fibonacci retracement is a technical tool for traders to find support or resistance levels based on the Fibonacci ratios. There are four primary levels to these ratios. Learn more here.

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Fibonacci retracement levels are a popular tool used by traders to identify turning points in cryptocurrency prices. Without this tool, traders might enter into Bitcoin trades without confidence, which can lead to unnecessary losses.

While the Fibonacci retracement tool is commonly used in the traditional stock or forex market, you’ll be surprised to know that it works wonderfully for cryptocurrency markets too. 

In this guide, we’ll decipher the technicalities of this tool. In the end, you’ll learn how you can use it to find critical levels on a trading chart.

Fibonacci retracements are hidden levels of the horizontal lines of 

 where Bitcoin prices may potentially reverse. The main levels are 23.6%, 38.2%, 61.8% and 78.6%. 

The Fibonacci retracement is derived from 

, which occurs in nature and mathematics, introduced by an Italian mathematician. They are used in finance by traders when analyzing a price chart to determine potential turning points.  

The Fibonacci retracement is expressed as a percentage and is applied to a previous trend. The retracement indicates how much of the previous trend is likely to be corrected before a resumption of the older trend. The Fibonacci retracement tool converts the percentage into Bitcoin’s price, identifying where the market may pivot and change trends. 

These key Fibonacci ratios seem like random figures, but they are not. They are deeply rooted in an organic number sequence discovered by humans over 700 years ago. 

Fibonacci retracement percentages were created from the Fibonacci number sequence. Leonardo de Pisa discovered and shared this number sequence in his book, 

The Fibonacci number sequence looks like this:

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610 …

The next number in the sequence is always the sum of the previous two numbers. The Fibonacci number sequence comes alive when you look at the ratio between adjacent numbers in the sequence.

For example, 21 divided by 34 equals .6176. Notice how the ratio of two adjacent numbers moves closer to .618 as the number sequence extends to the right. The .618 ratio translates to a percentage of 61.8%, which is one of the key levels.

We can apply this methodology again, dividing by every other number in the sequence.

In the second example, 21 divided by 55 equals .3818. A ratio of every two numbers in the sequence drives toward .382, or 38.2%, the second key level.

If we apply this methodology a third time, dividing by every third number in the sequence, we find 21 divided by 89 equals .2360. As this number sequence moves to the right, the ratio moves toward .236, or 23.6%. This is the third Fibonacci retracement number.

The fourth and final level is 78.6%, or .786 — which is the square root of .618, our first key level. 

To apply the tool correctly, we first need a completed trend. The Fibonacci retracement tool will measure the length of the trend, then divide out the four key levels.

In the example above, let’s assume the uptrend started at $250 and topped out at $350, for a gain of $100.

The four ratios of 23.6%, 38.2%, 61.8%, and 78.6% are applied to the size of the trend, which is $100.

This first retracement level at 23.6% will correct $23.60 from the price high ($100 uptrend x 23.6% = $23.60). $350 minus $23.60 = $326.40. 

The second retracement level at 38.2% will correct $38.20 from the $350 high ($100 uptrend x 38.2% = $38.20).

The calculations are similar for the third and fourth levels, using 61.8% and 78.6% as the multipliers.

After these calculations have been made, we have four price zones where a correction of the downtrend may stop and reverse back into an uptrend. In the example above, the price temporarily stops at the 38.2% level before falling further to the 61.8% level. Prices eventually stabilize and rally back up to the 38.2% zone.

Fortunately, modern charting packages will compute these calculations automatically and paint the horizontal price zones on the chart. Therefore, all you need to do is learn how to use the Fibonacci retracement tool.

Drawing Fibonacci retracement levels is simple with the help of the tools.

At this point, the Fibonacci retracement levels will appear on the chart. Traders will focus on these levels to identify reversal points within the subsequent correction.

Using the Fibonacci Retracement Tool to Trade Crypto

The Fibonacci retracement tool is fairly simple to use and can be effective when trading crypto.

First, find a completed trend. The tool can be applied to both uptrends and downtrends. The tool can also be applied to all chart time frames.

 Second, draw the Fibonacci retracement lines in the direction of the completed trend. For a completed uptrend, that means drawing the Fibonacci retracement from left to right in an upward direction. For a completed downtrend, draw the pattern from left to right, stopping at the end of the downtrend.

Third, wait for the price to reverse near the four key levels. Focus on these key levels in order to anticipate a price reversal.

Fourth, enter the trade in the direction of the original trend. A retracement of an uptrend means prices will correct lower. Then, time an entry into a bullish trade near one of the four key Fibonacci retracement levels. Some traders will blindly enter into the position at the retracement level. Other traders will wait for the price to react and break higher before entering long.

Once a good trading opportunity has been identified, traders will want to place a stop loss just below the swing low of a long trade, or just above the swing high of a short setup. Set up a strong risk-to-reward ratio by placing a target at least twice the distance to the stop loss.

The Fibonacci retracement tool is most powerful when used in tandem with other

. For example, the Fibonacci level can send a buy or sell signal, but it may or may not reverse. It’s always best to confirm with indicators like 

Fibonacci Retracement Example for Bitcoin

There are many examples of Bitcoin reversing prices near a Fibonacci retracement level. The market is fractal, so you can find these examples within all chart time frames.

After finding a low on November 26, 2020 (1), Bitcoin rallied about 23% to complete a trend on the 1-hour chart (2). When applying the tool from point 1 to point 2, these price zones are created on the chart.

In the chart above, Bitcoin begins a consolidation which immediately sees it correct to the 23.6% retracement level (yellow highlight), before rallying back up to meet the old high. The next corrective dip brings Bitcoin down to the 38.2% retracement level on three different occasions (blue highlights).

Bitcoin eventually breaks below the 38.2% retracement level and finds the next level of support near the 61.8% retracement level. Its price then bounces between the 61.8% and 38.2% Fibonacci retracement levels a couple of times (orange highlights).

After finding support at the 61.8% retracement level, Bitcoin resumes its uptrend, breaking above the 38.2% and 23.6% levels. Notice that once the 23.6% level has been broken, Bitcoin trades sideways on top of it (green highlight) before stretching to new all-time highs.

When Bitcoin prices break above the Fibonacci retracement level directly ahead, it can signal that the market is ready to turn higher. A trader will look to go long on a break above the next Fibonacci level with a stop loss just below the recent swing low. Look to target at least twice the distance to your stop loss. 

Bitcoin started a new uptrend in September 2020 (1). This uptrend stalled and turned lower in April 2021 (2). Bitcoin’s price began going through a correction (3).

Bitcoin’s price found support at the 38.2% retracement level on two separate occasions (4). Frequently, you will see prices bounce between two Fibonacci retracement levels. In the chart above, Bitcoin has bounced between the 38.2% and 23.6% levels (points 4 and 5) as the bulls and bears battle. This example shows why Fibonacci retracement levels — both upward and downward — are important with respect to the market.

Confirming Fibonacci With Other Technical Indicators

Fibonacci retracement is an effective tool by itself. However, there are other tools that traders typically incorporate in order to strengthen their signals.

The Fibonacci extension tool is a natural complement to retracements. The tool can help determine how far the current trend may travel.

 and trend lines are useful with Fibonacci levels. If Bitcoin is approaching a retracement level, look for a candlestick pattern, such as the 

, to confirm a resumption of the new bull trend.

Lastly, Elliott Wave Theory uses Fibonacci retracements quite a lot. Elliott Wave is an analytical method that studies the geometry of the market. 

Fibonacci retracements are an effective tool, but they can be easily misunderstood.

First of all, if a trader draws them incorrectly, it can lead to the display of improper levels on the charts.

Secondly, smaller crypto markets may not have as much trading volume as a large 

 like Bitcoin. As a result, the Fibonacci retracement signals from a smaller market are not as reliable.

Finally, with four different levels to choose from, it is possible that the trader may focus on the wrong level, and, as a result, either miss a winning trade or take on a losing one.

The Fibonacci retracement tool is one of the most powerful in a trader’s toolbox. It can help you identify hidden levels of support and resistance so that you can time your trades better. However, the tool is not foolproof. This tool is less effective on cryptocurrencies with a smaller 

. In addition, it can be difficult to discern which level is the best one to use.

How to Use Fibonacci Retracement Tools to Trade Bitcoin

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