Citigroup Claims Bitcoin’s Fate Tied to Stock Market Performance

Wall Street giant drops bombshell correlation analysis—suggesting crypto's independence might be illusionary.

The Interconnected Reality

Traditional finance meets digital assets in Citigroup's latest market assessment. Their research indicates Bitcoin's price movements increasingly mirror equity market trends—challenging cryptocurrency's decentralized narrative.

Market Correlation Dynamics

Analysis reveals synchronized patterns between major stock indices and Bitcoin valuations. When tech stocks stumble, crypto often follows suit. When traditional markets rally, digital assets frequently catch the updraft.

The Independence Question

This correlation raises fundamental questions about Bitcoin's promised decoupling from legacy systems. If crypto truly moves in lockstep with Wall Street, where's the revolutionary disruption? Just another asset class chasing the same institutional money—how delightfully conventional.

Whether temporary alignment or permanent linkage, one truth emerges: in finance, everything eventually becomes correlated. Even supposed revolutions can't escape gravity of established markets.

Despite the record wave of liquidations, the bank left its forecasts unchanged:

• $133,000 per bitcoin by the end of the year and $181,000 in the 12-month perspective
• $4,500 for Ethereum by the end of the year and $5,400 during the year

Citigroup noted that inflows into bitcoin ETFs have remained stable, likely due to “new, less Leveraged investors” who are supporting demand even after the sharp collapse.

“Sustained ETF flows support the base case, while the bear case depends on equity market weakness,” the bank’s analysts said.

In the wake of the liquidations, Crypto.com CEO Chris Marszalek called on regulators to check exchanges that may have restricted access to trading in the heat of the moment and where the largest liquidations took place, and to ensure that anti-money laundering program rules were followed.

Meanwhile, Hyperliquid founder Jeff Yan said that some centralized exchanges “underreport liquidations by hundreds of times.” According to him, despite thousands of liquidations per second on Binance, only one record is published.

Сообщение Citigroup Called bitcoin Dependent on the Stock Market появились сначала на INCRYPTED.