Citi turns bearish on bitcoin and ether as ETF demand fades

Lower price targets reflect weaker market sentiment

Citigroup has sharply reduced its 12-month outlook for bitcoin (COIN:BTCUSD) and ether (COIN:ETHUSD), pointing to declining investor demand, persistent ETF outflows and slower-than-expected progress on US cryptocurrency regulation.

The bank cut its bitcoin price target to $82,000 from $112,000, while lowering its ether forecast to $2,240 from $3,175.

Crypto prices remain under pressure

Bitcoin recently traded at $58,864.27, marking its lowest level since September 2024 after retreating roughly 50% from its record high of $126,223.18 reached last October.

Ether also continued to weaken, falling to $1,585.63, its lowest price since April 2025.

According to Citi, cryptocurrencies have struggled throughout the year as investors shifted capital elsewhere amid volatile markets, sustained ETF withdrawals and heightened interest in major IPOs.

Both bitcoin and ether remain below their long-term moving averages, reinforcing the current bearish technical picture.

ETF flows and regulation cloud the outlook

Citi’s downside scenario assumes recessionary conditions and continued ETF outflows, leading to projected prices of $53,000 for bitcoin and $1,094 for ether over the next year.

The brokerage said it has reduced its assumption for net ETF inflows over the next 12 months from $10 billion to zero.

“ETF flows, an important driver of prices, have turned negative recently,” Citi said, noting that bitcoin ETFs have recorded approximately $3.3 billion in net outflows so far this year.

The bank added that slow legislative progress in Washington and concerns that digital asset treasury companies could increase bitcoin sales have further weakened sentiment, while investors continue rotating into artificial intelligence-related assets.