A wave of leveraged long liquidations exposed to Bitcoin’s Equity sensitivity, according to Wall Street Bank Citigroup.
The bank said the US-China trade tensions were worsening triggering a sharp futures seller on Friday that dropped to crypto, emphasizing its volatility and relationship with equality.
Both Crypto and Stock Market has since restored some losses, the report noted. The world’s largest cryptocurrency is the trade around $ 111,700 at the time of publication.
A Violent flash crashing Press the crypto markets on Friday and removed more than $ 500 billion worth and forced nearly $ 20 billion in liquids on derivatives platforms. Bitcoin dropped almost 13% at an hour, before going down near $ 102,000.
Citi said the flow that was exchanged by the fund (ETF) remained resilient, likely driven by newer, less investors, and did not expect the destruction to reduce demand.
Bitcoin and Ether remain close to September levels, and the bank maintains 12-month targets of $ 181,000 for BTC and $ 5,400 for ETH, with forecasts at the end of the year $ 133,000 and $ 4,500.
Citi said the ongoing ETF flow supports the base of the base, while the bear case depends on the weakness in the equity market.
Read more: Bitcoin ETF Inflows prepared at Smash Records in Q4, says Crypto Asset Manager Bitwise
