MarketsShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailCiti Highlights Importance of New Investors Over Strategy's Bitcoin Sale
Citi emphasizes that the absence of new buyers is the main concern for Bitcoin rather than Strategy's sale.
By Will Canny, AI Boost|Edited by Stephen AlpherUpdated Jun 3, 2026, 1:31 p.m. Published Jun 3, 2026, 1:29 p.m. 2 min readMake preferred on
Strategy Executive Chairman Michael Saylor. (CoinDesk)Key Points:
- Citi conveyed that Strategy's recent sale of Bitcoin was in line with a previously announced tax-optimization strategy and does not impact the company's overall direction.
- The bank noted that spot Bitcoin ETF inflows account for approximately 45% of weekly price fluctuations, serving as the best indicator of investor adoption.
- The bank anticipates that market sentiment will remain low as ETF inflows decrease and the likelihood of a U.S. crypto market structure bill lessens.
Recent sales of Bitcoin by Strategy (MSTR) have significantly influenced market sentiment; however, Citi believes this move will not alter the company's long-term strategy.
The bank indicated that the sale was expected, as Strategy had previously announced its intent to sell certain Bitcoin holdings that were less favorable for tax purposes during its earnings call for the first quarter, as part of a portfolio optimization strategy.
Analyst Alex Saunders noted in a report on Tuesday, "Recent flows have been negative, and the chances for the passage of a U.S. market structure bill (which could rekindle investor interest) are diminishing."
Markets experienced turbulence after Strategy revealed the sale of a small portion of its Bitcoin holdings, a notable shift from Executive Chairman Michael Saylor's usual "buy and hold" strategy.
Although the company stated that the sale was related to tax planning, it raised fears that one of Bitcoin's most significant corporate supporters might start selling, leading to a decline in BTC prices and increased scrutiny of the digital asset treasury model.
Saunders maintains that spot Bitcoin ETF inflows are the primary factor influencing BTC prices, estimating that they account for roughly 45% of weekly price variations. He pointed out that recent ETF inflows have turned negative, indicating a broader lack of demand among investors for the cryptocurrency.
While companies holding digital assets have become key buyers of Bitcoin, the analyst does not attribute the recent price weakness to treasury-related selling. Instead, Citi contends that ETF flows provide the clearest high-frequency measure of investor interest and demand.
The report also cautioned that the likelihood of a U.S. crypto market structure bill passing this year appears to be decreasing, which diminishes the chances for fresh investor inflows in the near term.
Given Bitcoin's underperformance compared to equities, the declining legislative outlook is expected to keep market sentiment low unless there is regulatory advancement or renewed concerns about fiscal sustainability, the report concluded.
The announcement of Strategy's initial Bitcoin sale in years affected market sentiment, intensifying worries about potential selling from digital asset treasury firms and contributing to a drop in BTC prices. At the time of publication, Bitcoin was trading around $67,200.
Read more: Bitcoin faces outsized quantum threat as computing breakthroughs accelerate, Citi says
Bitcoin NewsMicroStrategyAI Disclaimer: Portions of this article were generated with AI assistance and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.More For You
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