Citigroup Analysts Attribute Bitcoin Crash to ETF Outflows
- Spot Bitcoin ETFs experienced net outflows of approximately $3.77 billion from May 15 to June 2.
- The largest withdrawals included $733.4 million on May 27 and $519.1 million on June 2.
- Citigroup analysts noted that ETF flows account for about 45% of Bitcoin’s weekly return fluctuations.
- Strategy’s recent sale of 32 BTC for around $2.5 million was its second sale, prompting speculation in the market.
- Analysts believe positive regulatory updates, like the CLARITY Act, could improve market sentiment for Bitcoin.
The significant outflows from spot Bitcoin ETFs have been identified as a primary factor behind the recent decline in Bitcoin prices, overshadowing other events such as Strategy’s BTC sale.
As of now, Bitcoin is trading below $67,000 amid ongoing selling pressure from ETFs, which saw substantial withdrawals exceeding $700 million on May27 alone.(Source)
