Citi Cuts 12-Month Price Targets for Bitcoin and Ether
Citi lowered its year-ahead forecasts for Bitcoin and Ether, citing a slowdown in ETF inflows that had previously driven crypto valuations higher.
Citi slashed its 12-month price targets for both Bitcoin and Ether, the bank confirmed, pointing to a significant pullback in exchange-traded fund inflows as the primary catalyst behind the downward revisions. The move signals a notable shift in sentiment from one of Wall Street's largest financial institutions toward the two leading cryptocurrencies by market capitalization.
ETF flows had served as a major engine of demand for Bitcoin and Ether in recent months, with institutional and retail investors funneling capital into spot crypto products following their regulatory approvals. As those inflows have cooled, Citi's analysts appear to have reassessed the near-term demand picture and recalibrated their price outlooks accordingly.
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The revision underscores a broader tension in crypto markets: prices have been heavily influenced by institutional product flows rather than purely on-chain fundamentals or retail speculation. When institutional appetite softens — even temporarily — it can prompt analysts to revisit valuation models that assumed sustained inflow momentum.
For investors, the Citi downgrade serves as a reminder that ETF-driven rallies carry their own fragility. Just as the launch and early success of spot Bitcoin and Ether ETFs provided a structural tailwind, any deceleration in net new money entering those vehicles can quickly alter the calculus for price forecasts across major bank research desks.
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