According to the research, Ethereum network activity has dropped and Bitcoin blockchain activity has stalled.

The research expects crypto to continue closely tied to equities.
Ethereum activity is dropping while Bitcoin activity is halting, the bank said.

Bitcoin and ether spot ETFs have outflows, the bank said.

In a Friday research study, Citi (C) claimed the cryptocurrency market has underperformed other risk assets due to declining demand and would remain heavily associated with equities.

The bank saw outflows from bitcoin and ether (ETH) spot ETFs.

"ETFs have seen net outflows, layer 1 activity has fallen or stagnated and funding rates remain very low," David Glass analysts noted. Funding rates are the perpetual futures price minus digital asset spot prices. Positive financing rates show perpetuals selling at a premium to the market price, increasing optimistic bets.

The bank anticipates the crypto market to remain closely connected with stocks throughout the macro calendar, which begins with today's Nonfarm Payrolls data.

Recent digital asset weakening has reduced bitcoin (BTC) miners' energy usage and "weaker production cost model outputs," the paper added.

The bank said that stablecoin market cap continues to expand despite market downturn.

The survey observed that the Bitcoin hashrate, a proxy for industry rivalry and mining difficulty, is at its recent high. A proof-of-work blockchain's hashrate is the processing power utilized to mine and process transactions.

The survey also noted a decline in Ethereum activity and a standstill in Bitcoin activity.

A Friday report from rival Wall Street firm JPMorgan reflected similar opinion. It stated the crypto industry lacks near-term catalysts and digital assets are more subject to macro issues.