Citi: Bitcoin is approaching support levels before the US elections, and ETF capital inflows have already slowed significantly

PANews February 4 News, according to CoinDesk, Citi analysis indicates that Bitcoin is approaching a critical price support level ahead of the U.S. presidential election. The report states that after several weeks of decline, Bitcoin’s price has fallen below the estimated average entry cost of the U.S. spot Bitcoin ETF, approximately $81,600, and is approaching a key level of around $70,000 before last year’s election. The report points out that the main new demand supporting the market—ETF capital inflows—has significantly slowed, while the futures market continues to see long liquidations. Analysts say that the cryptocurrency market exhibits volatility similar to precious metals but has not followed recent gold safe-haven gains, highlighting that its prices are still mainly influenced by liquidity conditions and risk sentiment rather than safe-haven demand. The report believes that regulatory progress remains a key potential catalyst, but the advancement of the U.S. Digital Asset Market Structure Act has been slow and uneven, and related expectations have weakened. The report also mentions macro risks, including concerns about the Federal Reserve’s balance sheet reduction, which historically puts pressure on crypto assets by reducing liquidity in the banking system.