Citigroup: The main reason for Bitcoin's decline is the lack of demand from new investors; the strategy of selling coins is not the key

According to CoinDesk, Citi analyst Alex Saunders stated in a recent report that the recent sale of Bitcoin by Strategy has caused market volatility, but the bigger issue is the lack of demand from new investors.

The report pointed out that this sale by Strategy is part of a previously disclosed tax optimization plan and not a strategic shift. What is truly concerning is that the spot Bitcoin ETF has seen net outflows for 11 consecutive days, which is an important signal of weak investor adoption. Analysts estimate that ETF fund flows can explain about 45% of Bitcoin's weekly price fluctuations.

In addition, the likelihood of the U.S. crypto market structure bill passing this year is decreasing, reducing potential positive catalysts. The bank believes that in the absence of regulatory progress and new capital inflows, Bitcoin market sentiment will remain subdued.