Citi cuts Bitcoin and Ethereum price targets

• Citigroup lowered its 12-month price targets for Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH), citing ETF outflows and weaker market conditions.
• The bank reduced its Bitcoin target to US$82,000 from US$112,000 and its Ethereum target to US$2,240 from US$3,175.
• Citi said investor sentiment, ETF flows and US regulatory progress will remain key factors shaping cryptocurrency markets over the next year.

Citigroup lowered its 12-month price targets for Bitcoin (CRYPTO:BTC) to US$82,000 from US$112,000 and Ethereum (CRYPTO:ETH) to US$2,240 from US$3,175, reflecting weaker market conditions and continued spot ETF outflows.

The revised forecasts are more cautious than Citi's previous outlook as the bank said weaker appetite for risk assets and slower-than-expected US cryptocurrency regulation have increased pressure on digital asset markets.

Citi said weaker investor sentiment, continued net outflows from spot cryptocurrency ETFs and slower regulatory progress in the United States were the main reasons behind its revised outlook.

The bank also cut its projected 12-month net inflow for spot Bitcoin ETFs from US$10 billion to zero after noting that spot Bitcoin ETFs have recorded net outflows of about US$3.3 billion since the start of the year.

Citi said its downside scenario values Bitcoin at US$53,000 and Ethereum at US$1,094 if market conditions deteriorate further.

The bank's latest assessment suggests global macroeconomic conditions, interest rate policy and institutional investor demand are likely to remain important drivers of cryptocurrency prices over the coming year.

Citi also said spot ETF fund flows are expected to remain a key measure of investor confidence as market participants continue to monitor regulatory developments and capital movements across the digital asset sector.

At the time of reporting, Bitcoin price was $60,292.72.