Bitcoin Approaches Pre-Election Floor as ETF Demand Wanes, Citi Reports
By John Nada·Feb 4, 2026·2 min read
Bitcoin nears a critical pre-election price floor as ETF inflows slow, according to a report by Citi. The cryptocurrency's future direction hangs in the balance.
Bitcoin is nearing a critical price threshold as ETF inflows dwindle, according to a report from Citi. The cryptocurrency is trading below essential ETF cost levels, with its current price hovering around $73,000, well below the bank’s estimated average entry price of $81,600 for U.S. spot bitcoin exchange-traded funds. This decline extends a drawdown that has left many ETF holders underwater.
Citi highlighted that the slowdown in ETF inflows represents a significant reduction in new demand. Futures markets are also experiencing long liquidations, adding to the market's volatility. Analyst Alex Saunders noted that while Bitcoin is often likened to “digital gold,” it has not mirrored the recent strength of precious metals. Gold has rallied amid geopolitical and macroeconomic uncertainties, while Bitcoin remains under pressure, indicative of its sensitivity to liquidity conditions rather than a safe-haven investment.
Regulation is viewed as a potential catalyst for change, yet progress on a U.S. digital asset market structure bill has been slow and inconsistent. Delays in Senate negotiations and mixed political support are dampening market sentiment, with the likelihood of legislative passage appearing to decline.
Macro risks also loom large, particularly concerns regarding a shrinking Federal Reserve balance sheet. Historically, a reduced balance sheet has strained crypto markets by decreasing bank liquidity. While fears of a prolonged crypto winter are rising, Citi maintains that this remains a tail risk rather than its base case.
With Bitcoin approaching the approximate $70,000 level it held before the last U.S. presidential election, markets are straddling an important inflection point. This situation could dictate near-term price direction, with many investors keenly observing developments.
In summary, as Bitcoin's price fluctuates near significant thresholds, the market's reaction to regulatory clarity and macroeconomic factors will be crucial in shaping its future trajectory.