Citigroup: Bitcoin is nearing pre-US election support levels; ETF inflows have slowed significantly.

PANews reported on February 4th, citing CoinDesk, that Citi analysis indicates Bitcoin is approaching a key pre-US election price support level. The report states that after weeks of decline, Bitcoin's price has fallen below the bank's estimated average entry cost of approximately $81,600 for US spot Bitcoin ETFs and is approaching the key level of around $70,000 reached before last year's election. The report points out that the main source of new demand supporting the market—ETF inflows—has slowed significantly, while the futures market continues to see long positions being liquidated. Analysts say the cryptocurrency market is exhibiting volatility similar to precious metals but has failed to follow the recent safe-haven rally in gold, highlighting that its price is still primarily influenced by liquidity conditions and risk sentiment, rather than safe-haven demand.

The report argues that regulatory progress remains a key potential catalyst, but the slow and uneven progress of the US digital asset market structure bill has dampened related expectations. The report also mentions macroeconomic risks, including concerns about the contraction of the Federal Reserve's balance sheet, which has historically put pressure on crypto assets by reducing liquidity in the banking system.