Citi: ETF Fund Flows Slowdown Weighs on Bitcoin Performance, but No Need to Overworry About "Crypto Winter"

Odaily According to Wall Street investment bank Citi, the cryptocurrency market is approaching a critical inflection point after several weeks of decline. Bitcoin is nearing its pre-U.S. election price range, while ETF inflows have significantly slowed. Although the current market volatility resembles that of precious metals, it has failed to gain corresponding upward momentum. On the policy front, U.S. digital asset market structure legislation is still seen as a potential key catalyst, but the current pace of Congressional progress is slow, and market pricing for the probability of the bill's passage has decreased. Citi also highlighted the risk of the Federal Reserve's balance sheet contraction, a factor that historically has often pressured crypto assets through tightening liquidity in the banking system. Despite rising market concerns about a prolonged "crypto winter," Citi believes this scenario remains a tail risk rather than a baseline expectation. (CoinDesk)