Citigroup has significantly reduced its cryptocurrency price forecasts, lowering its 12-month Bitcoin target to $82,000 from $112,000 and its Ethereum target to $2,240 from $3,175, citing deteriorating spot exchange-traded fund dynamics as a primary driver of the downward revision.
The investment bank also revised its expectations for institutional crypto inflows, now projecting zero net inflows into spot Bitcoin and Ethereum ETFs over the next 12 months, a dramatic shift from its prior forecast of $10 billion in net positive flows. This revision reflects recent outflows from major crypto ETF products, signaling diminished institutional appetite despite the launch of spot Bitcoin and Ethereum funds earlier this year.
The downgrade underscores growing skepticism among major financial institutions regarding near-term cryptocurrency price appreciation and suggests that institutional adoption—often cited as a tailwind for digital assets—may face headwinds in the coming year. Citigroup's reassessment could influence broader market sentiment as institutional investors and asset managers rely heavily on large-bank research for positioning decisions.