- Citi reduced its 12-month Bitcoin target from $112,000 to $82,000.
- Ether’s price target was lowered from $3,175 to $2,240.
- The bank cut its projected crypto ETF net inflows over the next year from $10 billion to zero.
- Negative ETF flows, regulatory delays, and potential Bitcoin selling by corporate treasury holders were cited as key reasons for the downgrade.
Citigroup has lowered its 12-month price forecasts for Bitcoin and Ether, citing weakening exchange-traded fund (ETF) demand, continued capital outflows, and slower-than-expected progress on cryptocurrency legislation in the United States.
According to a Reuters report, the bank reduced its Bitcoin price target from $112,000 to $82,000. It also lowered its Ether forecast from $3,175 to $2,240, reflecting a more cautious outlook for the cryptocurrency market over the next year.
The revised forecasts mark Citi’s latest reassessment of the digital asset sector as institutional investment momentum has weakened. The bank also cut its projected net inflows into cryptocurrency ETFs over the next 12 months from $10 billion to zero, indicating that it no longer expects ETFs to provide meaningful support for crypto prices during the forecast period.
ETF Outflows Drive Revised Outlook
Citi identified ETF flows as one of the primary drivers behind its revised forecasts. The bank noted that Bitcoin ETFs have recorded approximately $3.3 billion in net outflows so far this year, reversing the strong inflow trend that supported the market following the launch of spot Bitcoin ETFs.
The weaker fund flows suggest that institutional demand has softened, reducing one of the key sources of buying pressure that had contributed to Bitcoin’s price performance in recent years.
Alongside weaker ETF activity, Citi pointed to the slow pace of U.S. cryptocurrency legislation. The bank said delayed regulatory progress has limited the positive catalysts that many market participants expected to encourage broader institutional participation.
Additional Risks Remain for the Crypto Market
Beyond ETF demand and regulation, Citi also highlighted concerns surrounding digital asset treasury companies that hold Bitcoin on their balance sheets. The bank said the possibility that some of these companies could sell portions of their holdings has added another source of uncertainty for the market.
The latest forecast revision comes as the cryptocurrency sector continues to navigate changing macroeconomic conditions and shifting investor sentiment. While institutional participation remains an important factor for digital assets, Citi’s updated outlook reflects expectations that capital flows into crypto investment products will remain subdued over the coming year.
The revised targets represent Citi’s current base-case outlook based on prevailing market conditions, ETF trends, and the existing regulatory environment.
Institutional demand for Bitcoin continued to weaken this week, with spot Bitcoin ETFs extending their streak of net outflows. According to SoSoValue data, U.S. spot Bitcoin ETFs recorded $222.64 million in net outflows on Tuesday, following $231.10 million in outflows on Monday.
Tuesday marked the ninth consecutive trading day of net outflows since mid-June, indicating continued caution among institutional investors. If the current trend persists, sustained ETF selling pressure could weigh further on Bitcoin’s near-term price performance. U.S. spot Bitcoin ETFs recorded $4.06 billion in net outflows during June, marking their weakest monthly performance since the funds launched in January 2024.
Recently, Franklin Templeton has filed for new exchange-traded funds (ETFs) designed to automatically reinvest stock dividend income into Bitcoin. The proposed products aim to combine traditional equity investing with Bitcoin exposure, offering investors an alternative long-term investment strategy.
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