ChainCatcher message, Citibank stated in a research report on Friday that since the launch of spot Ethereum exchange-traded funds (ETFs) in the U.S. on July 23, the cryptocurrency market has been struggling.The bank noted that during this period, other risk assets have also performed poorly, but after adjusting for volatility, cryptocurrencies have underperformed since the rebound in non-farm payroll (NFP) data. Citibank stated that unless the market gains more clarity on the "soft landing versus hard landing outcomes" for the U.S. economy, ETF liquidity may continue to be disappointing.

ChainCatcher news, according to Bloomberg, Bitcoin investors in the Asian market are facing significant volatility, possibly due to automated trading protocols reacting to the fund flow data of U.S. ETFs holding cryptocurrencies.It is reported that the demand levels for these Bitcoin spot ETFs are disseminated throughout the cryptocurrency market during the Asian session after the U.S. stock market closes. On Tuesday, as fund flow data indicated that investors were pulling out, digital assets experienced their largest drop in a month."From an algorithmic trading perspective, robots can automatically crawl and trade based on this data," said Shiliang Tang, president of Arbelos Markets. "It seems that this is what is happening."