October and November, known as the historically bullish months for Bitcoin (BTC) and altcoins, are not going as desired in 2025. A major collapse occurred in October following US President Donald Trump's announcement of tariffs on China. While the collapse on October 11 was recorded as the largest liquidation event in history, the downward trend continued in the first week of November. While wondering whether the declines will continue, Citibank evaluated the declines in Bitcoin. Why Did Bitcoin Fall? Citi analysts said Bitcoin's decline was due to a liquidity shortage, according to Coindesk. They also noted that Bitcoin's decline and continued weakness are a warning for the Nasdaq. Citi cited the US Treasury Department's liquidity-reducing measures and the decline in bank reserves as the reasons for Bitcoin's weakness. However, it also predicted that Bitcoin and the Nasdaq would experience a combined recovery if liquidity recovered by the end of the year. Bitcoin's Decline Is a Warning for Nasdaq! Citibank stated that Bitcoin fell due to a liquidity crunch and decoupled from the Nasdaq. Citi analysts noted that Bitcoin's trading patterns have historically moved in close correlation with the Nasdaq 100 index. Nasdaq's earnings, in particular, showed a marked improvement as BTC's price moved above its 55-day moving average. However, Bitcoin has recently fallen below its 55-day moving average. With Bitcoin now trading below its 55-day moving average, the situation for the stock market is also worsening. Citi noted that while the Nasdaq remains relatively strong thanks to the AI craze, it faces a risk of decline due to weakness in Bitcoin, which is more sensitive to liquidity changes. However, Citibank added that there remains upside potential for both Bitcoin and stocks as liquidity shows signs of improvement. In this context, Citi analysts stated that the year-end Christmas Rally is not completely ruled out, and that if liquidity recovers, Bitcoin and the stock market may recover together. *This is not investment advice. Continue Reading: Citibank Explains Reason for Bitcoin's Continuing Declines, Warns! "The Declines Are a Serious Warning for the Giant Stock Exchange!"
