Citibank: The main reason for bitcoin's decline is the lack of new investor demand, Strategy selling is not the key factor

According to ChainCatcher, citing CoinDesk, Citi analyst Alex Saunders stated in the latest report that while Strategy's recent sale of Bitcoin triggered market volatility, the larger issue is the lack of demand from new investors.

The report indicates that this sale by Strategy is part of a previously disclosed tax optimization plan and not a strategic shift. What truly deserves attention is that spot Bitcoin ETF has seen net outflows for 11 consecutive days, which is an important signal of weak investor adoption. Analysts estimate that ETF fund flows can explain about 45% of Bitcoin’s weekly price fluctuations.

In addition, the likelihood of the U.S. crypto market structure bill passing this year is decreasing, reducing potential positive catalysts. The bank believes that in the absence of regulatory progress and new capital inflows, market sentiment for Bitcoin will remain subdued.