Bitcoin nears pre-election floor as ETF flows stall, Citi says

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bitcoin nears pre-election floor as ETF flows stall, Citi says The cryptocurrency is trading below key ETF cost levels and nearing its pre-election price floor as inflows to these vehicles fade and headwinds build, the bank said. By Will Canny , AI Boost | Edited by Sheldon Reback Feb 4, 2026, 12:57 p.m. Make us preferred on Google Bitcoin nears pre-election floor as ETF flows stall, Citi says. (Pixabay, modified by CoinDesk) What to know : Citi said long liquidations and sensitivity to equity and geopolitical risk continue to weigh on crypto prices. Progress on a U.S. market structure bill has been uneven, limiting renewed investor inflows. The bank flagged the pre-U.S. presidential election level of $70,000 as critical, given the administration’s stated support for digital assets. Crypto markets are approaching important inflection points after weeks of declines, according to Wall Street bank Citi (C). Bitcoin BTC $ 76,090.37 fell to around $73,000 before stabilizing, extending a drawdown that has pushed prices below the bank's estimated average U.S. spot bitcoin exchange-traded fund (ETF) entry price of $81,600. The largest cryptocurrency was trading around $76,100 at publication time. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . The report noted that ETF inflows, a major source of new demand, have slowed materially, while futures markets continue to see pockets of long liquidations. "Crypto markets have exhibited the volatility similar to precious metals but without the upside," analyst Alex Saunders wrote in the Tuesday report. Bitcoin is often framed as “digital gold,” but it has yet to mirror the recent strength seen in precious metals. While gold has rallied amid geopolitical risk and macro uncertainty, BTC has remained under pressure, highlighting its continued sensitivity to liquidity conditions and risk sentiment rather than haven demand. Regulation remains the key potential catalyst, Saunders said, but progress on a U.S. digital asset market structure bill has been slow and uneven. While Senate negotiations continue, delays and mixed political support have dampened sentiment, with market-implied odds of passage slipping. The analyst also pointed to macro risks, including concerns over a shrinking Federal Reserve balance sheet, which historically weighs on crypto through reduced bank liquidity. While concerns of a prolonged crypto winter are rising, Citi said that remains a tail risk rather than its base case. With average ETF holders now underwater and bitcoin nearing the roughly $70,000 it held before the U.S. presidential election, the report said markets are approaching levels that could prove decisive for near-term direction. Read more: Bitwise argues crypto is near the end of a brutal winter Bitcoin News Bitcoin ETF Citigroup AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . In this article BTC BTC $ 76 090,37 ◢ 2,80 %