(Seoul=Yonhap Infomax) Jang Won Lee Senior Reporter = Citi Group has warned that the recent decline in Bitcoin prices signals the onset of a ‘Halving-Season Chill’ in the cryptocurrency cycle.


According to CoinDesk on the 24th (U.S. local time), Citi Group noted, “Since April 10, approximately $4 billion (about 5.89 trillion won) has flowed out of spot Bitcoin exchange-traded funds (ETFs),” adding, “This has undermined sentiment in the crypto market and erased all gains recorded since the start of the year.”


Citi Group analyzed that current market conditions are consistent with historical patterns observed in previous Bitcoin halving cycles.


The bank pointed out that as the market enters the second year following the halving—a period historically marked by weakness—long-term holders are growing increasingly uneasy.


Alex Saunders, analyst at Citi Group, said, “Long-term Bitcoin holders are adopting a defensive stance, and with Bitcoin trading below key technical levels, new investors are struggling to find reasons to enter the market.”


He added, “While we had expected $7.5 billion in net ETF inflows by year-end, the current outflow trend increases the likelihood that Bitcoin prices will approach Citi’s year-end bearish target of $82,000.”


However, Citi Group maintained its 12-month price target for Bitcoin at $181,000 and its ETF inflow target at $25 billion, stating that a breakthrough on the regulatory front could revive demand for the cryptocurrency.

jang73@yna.co.kr

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