Citi: ETF Fund Flows Slow Down, Pressuring Bitcoin Performance, But No Need to Overly Worry About "Crypto Winter"

According to Odaily, Wall Street investment bank Citi stated that the cryptocurrency market is approaching a critical inflection point after several weeks of decline. Bitcoin is nearing its pre-US election price range, while ETF inflows have significantly slowed. Although the current volatility in the crypto market resembles that of precious metals, it has failed to gain upward momentum simultaneously. On the policy front, US digital asset market structure legislation is still seen as a potential key catalyst, but the current pace of progress in Congress 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, noting that historically, this factor 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)