Citi Cuts Bitcoin and Ether Price Targets as ETF Demand Fades
Citi has lowered its 12-month price targets for bitcoin and ether, citing a slowdown in ETF inflows as a key driver of the revision.
Citi has revised down its 12-month price targets for both bitcoin and ether, a signal that one of Wall Street's largest institutions is tempering its near-term optimism for the two dominant cryptocurrencies. The bank pointed to a cooling in exchange-traded fund inflows as a central factor behind the downgrade, a notable shift given that ETF demand had been one of the most closely watched catalysts for crypto prices over the past year.
The timing carries analytical weight. Spot bitcoin ETFs launched in the United States in early 2024 to historic inflows, briefly reshaping the narrative around institutional crypto adoption. But sustained enthusiasm was always going to be difficult to maintain, and the apparent deceleration in ETF flows suggests that the initial wave of pent-up institutional demand may have been largely absorbed, leaving the market without a comparable near-term demand catalyst.
Read more Analyst Jay Woods Names Two Mag 7 Stocks to Watch Through 2027 →
For ether, the dynamic is arguably more complicated. The asset has underperformed bitcoin in recent months, and a slowdown in ETF-related buying pressure removes one of the cleaner bullish arguments that had been available to analysts. Citi's revision reflects a broader recalibration across parts of Wall Street, where the gap between structural crypto optimism and short-term price reality is becoming harder to paper over.
The move by Citi does not represent a bearish capitulation — reducing a price target is distinct from issuing a sell recommendation — but it does reinforce a more measured view of crypto's trajectory. Investors who anchored expectations to the ETF launch as a sustained demand engine may need to reassess what the next meaningful catalyst looks like, whether that is regulatory clarity, macro conditions, or a new product cycle.
Continue reading at CoinDesk.
