Citigroup reports that Bitcoin is approaching pre election support levels in the United States, and ETF fund inflows are slowing down

Citibank analysis indicates that the price of Bitcoin is approaching the key support level of around $70000 before last year's US election. The report shows that after several weeks of continuous decline, Bitcoin has fallen below Citigroup's estimated average entry cost price of about $81600 for US spot Bitcoin ETFs. Citigroup stated that the main source of new demand supporting the market, the inflow of ETF funds, has significantly slowed down, while the futures market continues to see long positions being liquidated. Analysts point out that the volatility of the cryptocurrency market is similar to that of precious metals, but it has not followed the recent safe haven upward trend of gold, and prices are mainly influenced by liquidity conditions and risk sentiment. The report also mentioned that slow regulatory progress has weakened market expectations, and concerns about the contraction of the Federal Reserve's balance sheet may put pressure on cryptocurrency assets by reducing liquidity in the banking system.