Spot bitcoin ETF flows drive 45% of weekly BTC price moves and remain subdued, overshadowing MicroStrategy’s tax-related sales, Citi analysts say.
Bitcoin’s price weakness stems more from dwindling spot ETF inflows than MicroStrategy’s recent sales, Citi analysts said. The bank estimated ETF flows account for 45% of weekly BTC price movements, making them the primary gauge of investor adoption.
MicroStrategy’s disposal of bitcoin holdings, part of a tax-optimization plan disclosed in Q1 earnings, had minimal impact on its broader strategy. The firm’s move deviated from its long-standing buy-and-hold approach but was tied to portfolio optimization efforts.
Sentiment remains subdued as ETF flows turn negative and prospects for U.S. crypto market structure legislation fade, according to the report. Analysts noted these factors could prolong bitcoin’s consolidation phase.