Citibank has issued a cautionary report indicating that Bitcoin’s recent downturn could foreshadow a potential decline in the Nasdaq 100 Index. Analysts attribute this to the U.S. Treasury’s effort to replenish its cash reserves and reduced bank reserves by approximately $500 billion, which has tightened financial conditions and impacted both Bitcoin and other risk assets. However, as the Treasury nears completion of its balance rebuild, liquidity may improve, potentially leading to a year-end rebound in Bitcoin and broader stock markets. Meanwhile, Citibank points out that while AI’s surge boosted the stock market, investors remain skeptical about high-AI investment returns. Further concerns arise due to soaring hardware costs and supply chain bottlenecks. Tech giants Meta and Alphabet have secured billions through debt issuance for data center construction, raising concerns similar to the internet bubble era. Despite this, Citibank believes this borrowing reflects opportunity rather than stress but may not benefit bondholders directly.