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Citigroup: The recent weakness of Bitcoin may signal a weakening trend for the Nasdaq 100 index.

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On November 7, Citibank warned that Bitcoin's recent weak trading pattern may indicate a weakening trend in the Nasdaq 100 index. Bitcoin's performance has historically been highly correlated with the Nasdaq — when the coin price is above the 55-day moving average, the Nasdaq's return rate improves significantly, but currently, Bitcoin has fallen below this threshold, and the stock market's risk-adjusted returns have also declined. Analysts attribute the weakness in the crypto market to tightening liquidity, with bank reserves decreasing by approximately $500 billion since mid-July, pulling market liquidity away. However, the report also notes that the Treasury balance is approaching the bottom of previous replenishment cycles, and liquidity may soon improve, thereby boosting Bitcoin and stock market performance.

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