Bitcoin Falls Below 55-Day Moving Average, Citi Links Decline to Nasdaq 100 Risk

Bitcoin dropped below its 55-day moving average, a level historically tied to weaker risk-adjusted returns for the Nasdaq 100, Citi said. The bank attributed crypto market softness to tightening liquidity, with bank reserves down approximately $500 billion since mid-July. Citi noted Treasury balances have neared levels typical of previous refill cycle bottoms, suggesting liquidity conditions may soon improve and support both Bitcoin and equity markets.