🔔 Citigroup blames ETF exodus for Bitcoin drop, not Strategy sale
📌 In a recent note, Citigroup analysts said investors may be placing too much emphasis on Strategy’s latest Bitcoin transaction while overlooking the sustained withdrawals from U.S. spot Bitcoin exchange-traded funds. The bank argued that ETF flows remain one of the strongest indicators of demand for the cryptocurrency and continue to have a major influence on price movements.
⚠️ Strategy disclosed in its latest filing that it sold 32 BTC worth roughly $2.5 million between May 26 and May 31. The transaction marked the company’s first Bitcoin sale in four years and only the second in its history, prompting speculation across the crypto market because the firm has long promoted a strategy centered on accumulating and holding Bitcoin.
🌐 Looking beyond the Strategy transaction, Citigroup pointed to the persistent outflow trend from spot Bitcoin ETFs as the main factor weighing on prices. According to the bank’s analysis, ETF flows account for roughly 45% of weekly fluctuations in Bitcoin returns, making them one of the most important gauges of investor sentiment. Recent data from SoSoValue shows that U.S. spot Bitcoin ETFs recorded nearly $4 billion in net outflows between May 15 and June 2. Among the largest withdrawal days during that period were May 27, when investors pulled $733.4 million, June 2 with $519.1 million in net redemptions, and June 1 with another $483.7 million leaving the funds.