The recent liquidation wave once again highlighted Bitcoin’s growing correlation with equities, even as institutional demand through ETFs remains strong.
According to Citigroup’s latest report, intensifying U.S.–China trade tensions triggered sharp futures selloffs that erased over $500 billion from the crypto market last week. Bitcoin’s price fell 13% in just one hour, briefly touching $102,000 before recovering part of its losses alongside equities.
The bank noted that Bitcoin was trading around $111,700 at the time of writing, calling the rebound a natural reaction following panic-driven selloffs. Citigroup emphasized that the “flash crash” underscored Bitcoin’s increasing sensitivity to stock market movements.
Despite the volatility, Citigroup said spot Bitcoin ETF inflows have remained strong, largely driven by lower-leverage institutional investors. The bank does not expect recent liquidations to derail demand. Citigroup maintained its 12-month price targets of $181,000 for Bitcoin and $5,400 for Ethereum, with year-end forecasts of $133,000 and $4,500, respectively.
