Citi: Bitcoin Is Falling But Standing Strong

In recent times, the fluctuations in Bitcoin prices have caught the attention of investors. According to Citigroup's statement, last week's sharp liquidation wave once again highlighted Bitcoin's (Bitcoin) sensitivity to the stock market. The trade tensions between the US and China led to sharp sell-offs in futures on Friday, resulting in over $500 billion in losses in the crypto market.

Citigroup reported that this wave of selling caused a 13% drop in Bitcoin's price within an hour, with the price temporarily falling to $102,000. However, the bank noted that following this "flash crash," both the crypto and stock markets rebounded some of their losses; currently, Bitcoin is trading around $111,700.

The report from Citigroup highlights that despite these sharp fluctuations, inflows into spot Bitcoin ETFs remained strong. The bank expressed that they do not expect liquidations to hinder ETF demand due to the impact of new investors using less leverage. Binance is signaling a 12-month price target of $181,000 for Bitcoin and $5,400 for Ethereum (Ethereum), providing important information to investors.

Additionally, year-end forecasts have been announced with a target of $133,000 for Bitcoin and $4,500 for Ethereum. Citigroup noted that in its base scenario, strong ETF inflows continue, but under a negative scenario, weakness in stock markets could reduce crypto demand. All this data points to important considerations for investors.