Citibank: The weakness in Crypto Assets is due to a slowdown in ETF capital inflows and a decrease in risk appetite.

According to Mars Finance, Citigroup, a Wall Street bank, stated that although the stock market has performed strongly, the cryptocurrency market has weakened again recently, with significant liquidations in October undermining investor confidence. The wave of selling has caused risk appetite among leveraged traders and new retail investors entering the spot ETF to decline, with the latter withdrawing their investments. Recently, the funds flowing into U.S. spot Bitcoin ETFs have significantly decreased, weakening a key factor supporting the market's optimistic outlook. Citigroup had originally predicted that as financial advisors increase Bitcoin exposure, ETF funds would continue to flow in, but now the momentum has stalled, and market sentiment may remain low. On-chain data has also added a cautious atmosphere, with the number of large Bitcoin holders decreasing and the number of small retail wallets increasing, while financing rates have dropped, indicating that long-term investors may be selling off, and leverage demand is also weakening. Technically, Bitcoin has fallen below the 200-day moving average, which may further suppress demand. Citigroup has also linked Bitcoin's weakness to tightening bank liquidity. The report concludes that the flow of funds into spot ETFs is a key signal for observing shifts in cryptocurrency market sentiment.