Citi Says Bitcoin's Lack of New Investors Matters More Than Strategy's Sale

As Bitcoin has weakened recently, the market has focused on selling by major corporate holder Strategy, formerly known as MicroStrategy. Citi, however, believes that selling by a single institution primarily hurts sentiment, while the continued arrival of fresh capital is what truly shapes the medium-term outlook. Because spot Bitcoin ETFs provide a direct link to traditional finance, they have become an important gauge of adoption and risk appetite.

Citi's latest report says the shortage of new Bitcoin investors is more concerning than Strategy's sale. Flows into spot Bitcoin ETFs currently explain about 45% of weekly price movements, showing that momentum depends heavily on new demand. The data does not disclose the exact date or value of Strategy's sale, leaving a return to net ETF inflows as the key signal for Bitcoin's outlook.