According to Reuters, Citigroup has significantly cut its 12-month price forecasts for Bitcoin and Ethereum. The bank lowered its Bitcoin target from $112,000 to $82,000, a roughly 27% reduction, and its Ether target from $3,175 to $2,240, a 29% cut. At the same time, Citigroup revised its expected net inflows for U.S. spot crypto ETFs over the next 12 months from $10 billion to zero.
The bank cited several bearish factors: first, ETF fund flows have recently turned negative, with Bitcoin ETFs seeing cumulative outflows of approximately $3.3 billion year-to-date. Second, the pace of U.S. crypto legislation remains slow, lacking a clear regulatory framework. Third, concerns over potential Bitcoin sales by digital asset treasury companies are weighing on investor sentiment. These moves reflect growing institutional pessimism about the short-term outlook for crypto markets.