Citi: BTC could retest $70K amid slowing ETF inflows, regulatory uncertainty

Bitcoin is likely to retest the $70,000 level due to slowing spot ETF inflows and regulatory uncertainty, according to a recent report from Citigroup. Citi noted that BTC is trading significantly below the average entry price for spot ETF investors, which stands at $81,600. While ETF fund inflows have slowed, long positions continue to be liquidated in the futures market. The report also highlighted that although Bitcoin exhibits volatility similar to gold, it lacks upward momentum. Gold has rallied amid geopolitical risks, whereas BTC is more sensitive to liquidity conditions and risk-off sentiment. Delays in the passage of a U.S. bill on crypto market structure (CLARITY) and concerns over reduced liquidity from the Federal Reserve's balance sheet reduction are also pressuring the market. Citi explained that the price is approaching the pre-U.S. election level of $70,000, which will be a critical juncture in determining its future direction.