This week’s crypto rebound was pretty broad, but what’s noteworthy isn’t just the price.

Capital flows are rotating around Layer 2, DeFi, RWA, AI, and tokenization, while the macro backdrop is getting tougher with the Fed +25 bps, BOJ +25 bps, and oil still around $100+.

🚀 SECTOR PERFORMANCE

7D ROI:

• Layer 2: +19.07%
• DeFi: +17.34%
• RWA: +13.94%
• AI: +13.44%
• DePIN: +10.15%
• NFT: +7.40%
• GameFi: +7.34%
• Meme: +5.34%

Layer 2 and DeFi are leading, while RWA and AI continue to attract capital flows.

🏦 MACRO GOT SERIOUS

🇺🇸 The Fed raised 25 bps to 3.75%–4.00%, the first hike since 2023. 16 out of 18 officials saw at least one more increase later this year.

Japan’s BOJ also hiked by 25 bps, taking rates to 1.25%, the highest level in 31 years. Vote 7–2. But the JPY weakened after the decision because the market thinks the BOJ hasn’t given enough hawkish signals for the next rate hikes.

🛢️ Oil: Brent is still hovering around $100+.

Fed: “Higher rates.”
BOJ: “Same.”
JPY: “Actually, I’m weaker.” 💀

🏛️ CRYPTO REGULATION

The CLARITY Act failed to clear a procedural vote in the Senate, 49–50, falling short of the 60 votes required.

But right after that, the Digital Asset Tax Certainty Act H.R.10357 was passed by the House Ways and Means Committee 38–5, sending the bill to the next step in the House.

🇻🇳 Vietnam is also expected to issue its first digital asset licenses in 2026 under a pilot framework.

This week’s regulation:

USA: “Not yet.”
Vietnam: “Loading...” 💀

🤖 AI IS EVERYWHERE

AI continues to be the narrative running throughout the market.

Scroll up to the plan to shift from Ethereum Layer 2 to an AI-dedicated network.

Harmony also pivoted from blockchain to AI video clipping.

BlackRock warned that a lack of compute and data-center infrastructure could make AI increasingly concentrate in large conglomerates.

And then Claude shows up in a security study related to the OpenAI system.

AI stopped being a sector.
Now it’s a plot device. 💀

💰 ETF FLOWS

The BTC ETF saw around $463M in outflows during the week, while the ETH ETF still pulled in about $197M, marking the 4th straight week of inflows.

Then BTC capital flows came roaring back at the end of the week.

This shows institutional capital hasn’t disappeared, but it’s rotating and becoming more selective.

BTC: “Where’s the money?”
ETH: “They sent some here.” 💀

🧠 THE BIG PICTURE

I can see one very clear thing this week:

Crypto is moving from a single Bitcoin story to an ecosystem with multiple narratives at the same time.

Layer 2.
DeFi.
RWA.
AI.
Tokenized stocks.
ETF.
Regulation.

Meanwhile, the macro backdrop is still not getting any easier.

Crypto didn’t die.
It just opened 17 new tabs. 💀

Next week, which narrative will keep capital flowing the longest: BTC, ETH, AI, RWA, or DeFi?