Citi Says Bitcoin’s Demand Problem Is Bigger Than Strategy Sale

Citi says weak investor demand and persistent ETF outflows are weighing on Bitcoin more than Strategy’s recent BTC sale.

Bitcoin News

Citi says Bitcoin’s recent sell-off is being driven more by weak investor demand than by Strategy’s small Bitcoin (BTC) sale.

The bank said

affected sentiment, but that it was not the main force behind Bitcoin’s price action. Citi said S

certain tax-disadvantaged Bitcoin holdings as part of a portfolio optimization effort during the company’s first-quarter earnings call.

Bitcoin fell 9% after Sunday and dropped to its lowest level since March earlier on Wednesday. The decline came as spot Bitcoin exchange-traded funds continued to see outflows, pointing to weaker demand from new buyers.

ETF Flows Remain the Main Signal

Citi analyst Alex Saunders said spot Bitcoin ETF flows remain the key variable for Bitcoin prices. The bank estimates that ETF flows explain about 45% of weekly Bitcoin return variation.

Bitcoin ETFs have now recorded 1

, the longest daily outflow streak since the products launched in 2024, according to SoSoValue data cited in the report.