Citi's $81,600 Warning for Bitcoin

Citi, one of Wall Street's leading banks, stated that the price of Bitcoin has recently approached pre-election levels and that the $81,600 threshold is a critical support area. Following a long-standing downtrend, the cryptocurrency market has reached an important decision point.

In a report prepared by Citi, it was emphasized that the price of Bitcoin remains below the $81,600 level anticipated by the bank for exchange-traded fund (ETF) entry, while the price fell to around $73,000 and then stabilized around $76,100. This situation reveals the fragile structure of the market.

The report also notes that the spot Bitcoin ETF entries, which are the main driving force behind new demand, have significantly slowed down. This situation, combined with the liquidation of long positions in the futures market, increases the pressure on prices. Cryptocurrency analyst Alex Saunders stated that Bitcoin markets exhibit volatility similar to precious metals but have not recently caught an upward momentum like gold.

Although Bitcoin is generally referred to as digital gold, it is unable to match the rising performance of gold due to geopolitical risks and macroeconomic uncertainties. Citi analysts explain that the leading cryptocurrency continues to be sensitive to liquidity conditions and risk appetite rather than demand for safe-haven assets.

Furthermore, the slow and unstable progress of the regulatory bill regarding the structure of the digital asset market in the U.S. is among the factors negatively affecting investor appetite. On the macroeconomic side, concerns about the Federal Reserve's balance sheet shrinkage are putting pressure on the cryptocurrency market. The reduction of bank liquidity historically signifies a challenging process for cryptocurrencies.

The losses experienced by average ETF investors and the approaching price towards the $70,000 level, before the election, will play a critical role in determining the short-term direction. In light of these uncertainties, investors should carefully monitor the market's trajectory.