Bitcoin rebounds after declines, but macro risks still weigh on the market
Additional support for sentiment came from flows into U.S. spot bitcoin ETFs. On Friday, these funds recorded $85.9 million in net inflows, breaking a streak of five consecutive sessions of capital outflows.
Bitcoin is currently testing several key support levels, primarily the 200‑week moving average, which historically has repeatedly aligned with market lows and the start of new bull cycles.
On‑chain indicators also suggest an improvement in valuation attractiveness. One such metric is the MVRV Z‑score, which compares bitcoin’s market capitalization to its realized value, i.e., the average price at which all BTC were last moved on the network. This indicator has fallen to levels that in the past often signaled favorable entry points for long‑term investors.
However, it may still be too early to announce a definitive bottom for the bear market. The main risk factors remain macroeconomic issues, including rising inflation and market expectations of further interest rate hikes, which could curb the growth potential of risky assets.
This week’s focus for investors will be the Federal Reserve’s Wednesday decision on interest rates, especially the first press conference of the new Fed Chair, Kevin Warsh. The market will analyze his stance on inflation, labor market conditions, and the future path of rates. These comments could have a significant impact on the valuation of risky assets, including cryptocurrencies.
BIGGEST MARKET CHANGES
The TAO token (Bittensor) was one of the strongest assets in the cryptocurrency market last week, gaining about 36% after reports that the U.S. government ordered Anthropic to restrict foreign access to its AI models Fable 5 and Mythos 5.
These reports drew investor attention to regulatory and geopolitical risks associated with centralized AI infrastructure. They showed that access to the most advanced models can be restricted by governments or corporations.
In response, some capital began flowing into projects related to decentralized AI, and Bittensor remains one of the most recognizable projects in this segment.
NOTABLE HISTORIES
Citi launches tokenized deposit receipts for the private market
Citigroup, one of the largest investment banks in the U.S., announced the launch of a Digital Depositary Receipts (DDR) program for shares in private companies. The solution aims to create a more direct and transparent model linking issuers with investors and to increase the accessibility of the private equity market.
This is the first case in which a global financial institution simultaneously serves as both issuer and custodian of tokenized deposit receipts representing shares in private enterprises.
Lengthening IPO processes are making private companies increasingly seek alternative liquidity sources. Current transactions in the private equity market often involve complex structures, many intermediaries, limited transparency, and high costs.
By tokenizing shares on a single institutional‑class platform, Citi aims to simplify access to the private market, reduce operational costs, and increase transparency and trading efficiency.
This move represents another step toward institutional adoption of asset tokenization and the modernization of the private capital market. The bank also announced that it is exploring the possibility of expanding the solution so that it can operate both in traditional financial infrastructure and across multiple blockchain networks.
