What is the Reason for the Long-Term Decline in Bitcoin and Ethereum? Citi Analysts Explained!

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Bitcoinsistemi2024/08/27 14:27

By:Elif Azra Güven

Citi analysts noted that the cryptocurrency market has struggled since the launch of spot Ethereum ETFs due to weak demand and ETF outflows.

In a milestone for the cryptocurrency market, spot Bitcoin and Ethereum ETFs were approved and made available to investors.

While these ETFs are expected to add vitality to the market, Citi stated in its latest report that the cryptocurrency market has struggled due to weak demand and ETF outflows since the launch of spot Ethereum ETFs.

According to Coindesk, Citi analysts said that spot Bitcoin and Ethereum ETFs have experienced net outflows in the past month.

Citi analysts said that other risky assets have also performed poorly since spot ETH ETFs, but cryptocurrencies have been affected more, writing:

“Crypto demand has decreased in recent weeks, as spot Bitcoin (BTC) and Ethereum ETFs have experienced net outflows in the past month.

These outflows also coincide with relatively weak crypto interest and weak network activity.”

Analysts said that until the market gains more transparency about the consequences of a soft landing or a hard landing in the U.S. economy, ETF flows could continue to disappoint.

*This is not investment advice.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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