Citibank indicates that recent downturns in the cryptocurrency market are primarily due to diminished ETF inflows. This trend has been exacerbated by a broader sell-off in October that has impacted the risk appetite for both traders and investors.
October’s market volatility led to significant withdrawals from US spot Bitcoin ETFs, which were previously expected to see continued inflows. As a result, the optimistic outlook for Bitcoin has weakened, with on-chain data revealing a drop in significant Bitcoin holders.
Bitcoin has fallen below its 200-day moving average, highlighting a lack of demand. Citi correlates the cryptocurrency’s decline with tightening bank liquidity. The report emphasizes that monitoring spot ETF fund flows is crucial for predicting future market sentiment.
Leave a Reply