Citi has warned that Bitcoin's inability to attract fresh investor money poses a greater threat to the market than the recent sale of Bitcoin by the corporate buyer Strategy. The bank's analysts argue that the absence of new inflows signals weak demand, overshadowing the short-term pressure from a known seller.
What Citi's analysis says
In a note published this week, Citi researchers contrasted two forces: Strategy's decision to sell a portion of its Bitcoin holdings, and the broader trend of stagnant capital entering the asset. While the strategy sale created headlines and some downward price pressure, the bank views the lack of new buyers as the more structural concern. Without fresh demand, any recovery could be shallow.
Why inflows matter more
Bitcoin has historically rallied on waves of new retail and institutional participation. When that flow dries up, even large holders reducing positions can have an outsized effect — but Citi's point is the opposite: the real problem is the empty pipeline of new money. The Strategy sale, by contrast, is a one-time event with a finite impact.
What this means for the market
The assessment comes as Bitcoin trades in a range below its 2025 highs, with volumes thinning. For traders, the Citi note reinforces a cautious view: until fresh capital returns, the market may continue to drift. The bank didn't offer a price target or timeline, but the message is clear — don't blame Strategy for the slump.
