4 hours ago
A question of leveraged agelong liquidations has exposed bitcoin’s (BTC) equity sensitivity, according to Wall Street slope Citigroup.
The slope said worsening U.S.-China commercialized tensions triggered a crisp futures selloff connected Friday that spilled into crypto, underscoring its volatility and correlation with equities.
Both crypto and banal markets person since clawed backmost immoderate losses, the study noted. The world's largest cryptocurrency was trading astir $111,700 astatine work time.
A violent flash crash deed crypto markets connected Friday and erased much than $500 cardinal successful worth and forced astir $20 cardinal successful liquidations crossed derivatives platforms. Bitcoin dropped arsenic overmuch arsenic 13% successful an hour, earlier bottoming adjacent $102,000.
Citi said exchange-traded money (ETF) inflows remained resilient, apt driven by newer, little levered investors, and it doesn’t expect the liquidations to derail demand.
Bitcoin and ether stay adjacent September levels, and the slope kept its 12-month targets of $181,000 for BTC and $5,400 for ETH, with year-end forecasts of $133,000 and $4,500.
Citi said sustained ETF flows enactment the basal case, portion the carnivore lawsuit depends connected equity marketplace weakness.
Read more: Bitcoin ETF Inflows Poised to Smash Records successful Q4, Says Crypto Asset Manager Bitwise
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