Citibank trimmed its 12-month price targets for Bitcoin to $112,000 and Ethereum to $3,175, citing stalled U.S. crypto legislation and softer ETF inflows as the primary drivers behind the revision. The downgrade reduced prior targets of $143,000 for Bitcoin and $4,304 for Ethereum, even as both assets traded near record highs. The downgrade is driven by three pressure points: lack of progress on comprehensive U.S. crypto laws, softer expectations for fund inflows into spot ETFs, and weak on-chain activity relative to the size of the asset class. Citibank notes that market momentum remains policy-dependent and institutional capital remains cautious as the CLARITY Act stalls in the Senate.
It now expects about $10 billion of net inflows into Bitcoin funds and $2.5 billion into Ethereum products over the next 12 months, materially lower than earlier forecasts. On-chain metrics have improved modestly but do not justify the previous upside without a clearer regulatory backdrop.
Even in a cautious base case, Citi’s bull scenario still envisions Bitcoin reaching as high as $165,000 and Ethereum around $4,488 if regulatory breakthroughs or renewed ETF demand occur. The update suggests the market may shift toward a range-bound regime, where liquidity timing and durable, utility-driven growth become key near-term drivers.
Leave a Reply