Citigroup Explains Why the Bitcoin (BTC) Price Fell
Citigroup analysts reported a sell-off by major Bitcoin whales, citing a decrease in addresses holding large BTC amounts and an increase in small investor wallets. Bitcoin recently dropped below the significant $100,000 support level for the first time since June, coinciding with reduced interest in cryptocurrencies and AI stocks. The decline is attributed to US-China trade tensions and liquidation of leveraged positions. Though Bitcoin recovered slightly to $103,788, it remains down 6% for the week.
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Bitcoin Whales Begin Selling
According to Citigroup analysts, some major Bitcoin whales may have started selling. “On-chain data shows a gradual decline in addresses holding large amounts of Bitcoin, while the number of small investor wallets has increased. It appears some long-term investors have turned to the sell side,” bank analyst Alex Saunders wrote in a note.
Bitcoin Falls Below $100,000
Bitcoin fell more than 6% yesterday, dropping below the critical $100,000 support level. This marked the first time BTC has broken below that level since late June. The decline has coincided with weakening investor appetite for both cryptocurrencies and AI-related stocks.
Recent Price Action and Downtrend
Recent price action in Bitcoin highlights a potential continuation of its downtrend. After a historically strong October, Bitcoin missed expectations this year for the first time since 2018. Citigroup analysts attributed this downward trend to the resurgence of US-China trade tensions and the subsequent liquidation of highly leveraged digital asset positions.
Bitcoin's Current Price Performance
At press time, Bitcoin was trading at $103,788, reflecting a 3.2% increase. However, Bitcoin remains weaker overall, having declined 6% on the week.
Important Disclaimer
This is not investment advice.