Citi: Crypto sentiment to remain subdued without positive catalysts

Citi has identified fund flows into spot Bitcoin ETFs as a key driver of the cryptocurrency's price, CNBC reports. In a note, Citi analyst Alex Saunders explained that ETF inflows are a major factor accounting for about 45% of Bitcoin's weekly return volatility and serve as the most effective indicator of investor demand. He pointed out that recent pressure on Bitcoin's price has coincided with 13 consecutive trading days of net outflows from these funds. Saunders added that waning expectations for the passage of the CLARITY Act are also dampening investor sentiment. He concluded that without positive regulatory news or a recovery in demand for inflation hedging, market sentiment is likely to remain sluggish for the foreseeable future.