Citi Cuts 12-Month Bitcoin and Ether Price Targets Amid ETF Slowdown
Citi analysts have lowered their year-ahead crypto price targets as exchange-traded fund inflows show signs of drying up.
Citi has slashed its 12-month price targets for both bitcoin and ether, citing a meaningful slowdown in exchange-traded fund inflows that had previously helped power the crypto market's rally, according to a report from CoinDesk. The Wall Street bank's move signals growing caution among institutional analysts about near-term momentum in digital assets.
ETF flows have been widely credited as a key driver of bitcoin's surge following the landmark approval of spot bitcoin ETFs in the United States earlier this year. When those inflows decelerate, analysts argue, one of the primary catalysts supporting elevated price levels loses its force — a dynamic Citi appears to be pricing into its revised outlook.
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The target cuts reflect a broader recalibration among financial institutions that rushed to incorporate crypto into their coverage after the ETF approvals opened the door to mainstream institutional participation. Enthusiasm that defined early 2024 has given way to a more measured assessment of sustainable demand, particularly as the initial wave of ETF adoption matures and incremental buyers become harder to identify.
From an analytical standpoint, Citi's revision underscores how tightly crypto valuations have become linked to traditional financial product flows rather than purely on-chain or retail-driven demand. That structural shift means bitcoin and ether prices may increasingly behave like assets subject to institutional reallocation cycles, making macro conditions and fund appetite critical variables to watch.
Continue reading at CoinDesk.
