Citigroup Slashes Crypto Forecasts Amidst Bearish Market Trends

Citigroup cut its 12-month forecasts for bitcoin and ether, blaming waning investor interest, negative ETF flows, and lacking U.S. crypto legislation. The targets now stand at $82,000 for bitcoin and $2,240 for ether. Market volatility, big IPO hype, and bearish sentiment continue to affect crypto markets.

Citigroup recently adjusted its 12-month forecasts for bitcoin and ether, citing decreased investor interest, negative trends in exchange-traded fund (ETF) flows, and insufficient progress in U.S. digital asset legislation as key factors impacting the outlook for these leading cryptocurrencies.

The brokerage's current target for bitcoin is now set at $82,000, a reduction from the previous $112,000, while the forecast for ether has been lowered to $2,240 from $3,175. Bitcoin recently traded at $58,864.27, a level not seen since September 2024, after halving in value from its October 2023 peak of $126,223.18. Similarly, ether was valued at $1,585.63, its lowest point since April 2025.

Heightened market instability, enthusiasm surrounding major anticipated IPOs, and consistent ETF outflows reflecting the assets have plagued the crypto markets this year. Both bitcoin and ether remain below their long-term moving averages, indicating a bearish sentiment. Citigroup's bear-case scenario forecasts bitcoin at $53,000 and ether at $1,094 over the next year, assuming recessionary macroeconomic conditions and ongoing ETF outflows. The firm noted that ETF flows have turned negative, with bitcoin ETF flows dropping by approximately $3.3 billion so far this year.