Brokerage turns more cautious on leading cryptocurrencies
Citigroup has reduced its 12-month price forecasts for bitcoin (COIN:BTCUSD) and ether (COIN:ETHUSD), citing weaker investor demand, persistent exchange-traded fund (ETF) outflows and limited progress on US cryptocurrency legislation.
In a research note published on Tuesday, the bank lowered its bitcoin target to $82,000 from $112,000 and cut its forecast for ether to $2,240 from $3,175.
Bitcoin and ether remain under pressure
Bitcoin was recently trading at $58,864.27, its lowest level since September 2024, after falling by around 50% from its record high of $126,223.18 reached in October last year.
Ether traded at $1,585.63, marking its weakest level since April 2025.
Cryptocurrency markets have struggled throughout the year as elevated market volatility, investor focus on several high-profile IPOs and continued ETF outflows have reduced demand for digital assets.
Both bitcoin and ether are currently trading below their long-term moving averages, highlighting the negative market trend.
ETF flows remain the key driver
Citi’s downside scenario, based on a recessionary economic backdrop and ongoing ETF withdrawals, values bitcoin at $53,000 and ether at $1,094 over the next 12 months.
The bank said the forecast revision reflects its decision to reduce its projected net ETF inflows over the coming year to zero from a previous estimate of $10 billion.
“ETF flows, an important driver of prices, have turned negative recently,” the bank said, adding that bitcoin ETFs have recorded net outflows of approximately $3.3 billion since the beginning of the year.
Citi also noted that investor sentiment has been weakened by the slow pace of US digital asset legislation and concerns that cryptocurrency treasury companies could increase bitcoin sales. At the same time, capital has continued to rotate towards artificial intelligence-related investments.