Citigroup: For every net outflow of $1 billion from a Bitcoin ETF, the price of the currency will drop by approximately 3.4% According to BlockBeats, on November 24th, Bitcoin exchange traded funds are experiencing their worst monthly capital outflows in nearly two years, putting even greater pressure on the already sluggish cryptocurrency market. Bloomberg compiled data showing that investors have withdrawn $3.5 billion from US listed Bitcoin ETFs so far in November, almost equaling the record high monthly outflow of $3.6 billion set in February. BlackRock's Bitcoin fund IBIT accounts for approximately 60% of the total assets of this type of fund, and the fund recorded $2.2 billion in redemptions in November. If there is no large-scale capital outflow in the coming days, it will set its worst monthly performance. Citi Research has quantified this phenomenon: for every (net) outflow of $1 billion from a Bitcoin ETF, the price drops by approximately 3.4%, and vice versa. Citigroup analyst Alex Saunders set a pessimistic year-end target of $82000 based on this (assuming zero capital inflows). The actual outflow scale has reached billions of dollars, indicating that there is still room for further decline in the future. Rebecca Sin, a senior ETF analyst at Bloomberg Intelligence, pointed out that "as the market continues to decline and volatility intensifies, especially in combination with the current trend of gold, capital outflows may continue." She also revealed that some of the withdrawals are due to hedge funds discontinuing a popular strategy called "basis trading," which profits by capturing the price difference between spot and futures markets. Some institutions also use ETFs to profit from cryptocurrency fluctuations or hedge short positions in derivatives.