Everyone is blaming Strategy! But Wall Street giant Citi reveals the main reason Bitcoin is falling!

Strategy, the largest institutional Bitcoin (BTC) investor, recently did what was feared and sold BTC for the first time in a long time.

This situation created panic in the market, and the Bitcoin price fell to $65,000 following the selling pressure that came after this news.

According to Coindeks, while this sharp drop in BTC is attributed to Strategy’s sale, Wall Street bank Citi assessed the impact of Strategy’s sale on the BTC price in its latest report.

According to Citi analysts, Strategy’s Bitcoin sale may have shaken the markets, but the bigger problem for BTC is the lack of new buyers. Citi also added that they do not believe Strategy’s sale will change the company’s long-term strategy.

At this point, Citi analysts note that the real problem facing Bitcoin is not the BTC sell-off previously announced by Strategy as a simple tax-saving strategy, but rather the disappearance of new buying pressure from institutional sources such as ETF inflows.

According to the bank, market sentiment has become quite sluggish. The fundamental crisis lies not in corporate selling pressure, but in the absence of new buyers and new capital to push the market upwards.

Citi added that investor sentiment is struggling to recover as the likelihood of the CLARITY Act, also known as the Transparency Act, passing Congress this year has decreased.

According to the bank, this bill was seen as a strong catalyst for large-scale institutional entry. Unless there is an unexpected regulatory change, Citi believes Bitcoin is likely to continue its sideways or downward trend for now.

*This is not investment advice.

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