Bitcoin Liquidations Highlight Equity Sensitivity Amid Market Volatility
- Citigroup reports that leveraged long liquidations have highlighted Bitcoin's sensitivity to equity markets.
- U.S.-China trade tensions caused a futures selloff, impacting both crypto and stock markets, demonstrating their volatility and correlation.
- A flash crash erased over $500 billion in value from crypto markets, with nearly $20 billion in liquidations; Bitcoin dropped by 13% in an hour.
- Despite the crash, exchange-traded fund (ETF) inflows remain stable, supported by newer investors with less leverage.
- Bitcoin and Ether prices are close to September levels, with Citi maintaining 12-month targets of $181,000 for BTC and $5,400 for ETH.
- Citi's year-end forecasts are $133,000 for BTC and $4,500 for ETH, expecting sustained ETF flows unless equity markets weaken further.
