Bitcoin Price Drop Driven by Weak Demand, Not Strategy Sale
Citi analysts say Bitcoin's recent price drop is more due to weak investor demand and persistent ETF outflows than Strategy's small BTC sale.
The bank estimates that spot Bitcoin ETF flows explain about 45% of weekly Bitcoin return variation, with the last 11 trading days showing net outflows.
Citi analyst Alex Saunders says this indicates a broader lack of fresh investor demand for Bitcoin, which is also being weighed down by its underperformance against equities and concerns over fiscal sustainability in major economies.