Weekly Crypto Market Review: Bitcoin Correction, Institutional Expansion, and Municipal Bond Innovation

Source: CryptoValleyJournal Original Title: Weekly review calendar week 47 – 2025 Original Link: https://cryptovalleyjournal.com/hot-topics/news/weekly-review-calendar-week-47-2025/

Market Volatility and Bitcoin Price Pressure

After recent billion-dollar liquidation cascades, Bitcoin price shows no signs of stabilizing. The 100,000 USD level broke without notable resistance, subsequently slipping below 90,000 USD. The 27 percent drop since the all-time high pushes the market back to levels seen shortly after Trump’s election victory. US spot Bitcoin ETFs failed to provide support, with more than five billion USD flowing out since the downturn began on October 29, noticeably increasing selling pressure. Sentiment remains fragile as falling equity markets and growing fears of a potential AI bubble weigh on risk appetite. Net inflows since inception of the products fell from 62.7 billion USD to 57.3 billion USD, corresponding to a decline of around eight percent. This development is reminiscent of the correction in February, when eleven percent of assets under management were withdrawn. At that time, Bitcoin plunged 31 percent before a recovery set in.

Major Institutional Moves

Strategic Exchange Funding

A leading cryptocurrency exchange raised 800 million USD in a new funding round. The round consisted of a main tranche from leading financial investors and a strategic tranche of 200 million USD from a major market-making firm. This raises the exchange’s valuation to around 20 billion USD, after roughly 15 billion USD had been discussed in September. The investment provides not only capital but also deep expertise in market structure and institutional trading processes, intended to help expand infrastructure for institutional clients and significantly strengthen market position in the regulated financial environment.

Sovereign Wealth Fund Expansion

A sovereign wealth fund from Abu Dhabi significantly increased its Bitcoin bet shortly before the recent market downturn. The Abu Dhabi Investment Council boosted its stake in a spot Bitcoin ETF to 518 million USD. The increase occurred just weeks before Bitcoin reached a new all-time high in October and subsequently corrected sharply. The fund classifies Bitcoin in a manner similar to gold and views it as a potential store of value in a long-term portfolio. This decision aligns with a broader strategy among Gulf states to substantially expand their presence in the global crypto-financial system.

Endowment Fund Allocation

The Harvard University endowment fund significantly expanded its position in spot Bitcoin ETFs. For the third quarter of 2025, the endowment reported around 6.8 million shares of an iShares Bitcoin Trust equivalent to roughly 443 million USD. This increased Harvard’s previous position by more than 250 percent. While the amount represents less than one percent of the total endowment, this Bitcoin position was declared the university’s largest US equity position. In parallel, Harvard increased its stake in a gold ETF to around 661,391 shares worth 235 million USD. These steps indicate a strategic approach in which the endowment uses both digital assets and traditional precious metals as instruments for hedging and diversification.

Innovation in Crypto Finance

Municipal Bond Backed by Bitcoin

The US state of New Hampshire created a notable bridge between traditional financial markets and digital assets by approving a 100-million-USD bond secured by Bitcoin. The so-called conduit revenue bond allows companies to post cryptocurrencies as collateral, while the state merely acts as a pass-through entity and assumes no credit risk of its own. The structure requires substantial overcollateralization, with Bitcoin collateral required to remain well above the bond’s nominal value. According to reports, the minimum coverage is around 130 percent. If the value falls below that threshold, an automatic liquidation is triggered.