Bitcoin's Recent Weakness May Signal Nasdaq Decline, Citibank Reports

According to PANews, a recent report from Citibank suggests that Bitcoin's current weak trading pattern could serve as a warning for a potential decline in the Nasdaq 100 Index. Analysts highlight that the U.S. Treasury's efforts to rebuild its cash balance, along with a reduction in bank reserves by approximately $500 billion, have led to tightened liquidity, negatively impacting Bitcoin and other risk assets. However, as the Treasury's balance nears its rebuilding completion, liquidity may improve, potentially driving a year-end rebound for Bitcoin and the stock market. Additionally, Citibank notes that while the AI boom has supported the stock market, investors remain skeptical about the returns on high AI investments. Concerns are also rising over soaring hardware costs and supply constraints. Tech giants Meta and Alphabet have raised hundreds of billions of dollars through debt issuance to fund data center construction. This shift from cash to debt resembles the internet bubble era, although current corporate balance sheets are more robust. The report suggests that this debt expansion reflects opportunities rather than stress, but it may not necessarily benefit bondholders.