Citi Says Crypto’s Weakness Stems From Slowing ETF Flows and Fading Risk Appetite

Why It Matters

Spot ETF inflows are a primary conduit for institutional capital into Bitcoin; a slowdown signals reduced institutional demand and could keep crypto prices muted, affecting broader market risk dynamics.

Summary

Citi attributes the recent dip in crypto markets to the October 10 liquidations that dented risk appetite, a sharp slowdown in U.S. spot bitcoin ETF inflows, and weakening on‑chain fundamentals. The bank notes that large‑holder (whale) bitcoin addresses are shrinking while retail wallets rise, and Bitcoin has slipped below its 200‑day moving average, further eroding technical support. Citi warns that without renewed ETF capital, sentiment could stay soft despite strong equity markets, and tighter bank liquidity may compound the downside.