Citi Slashes Bitcoin, Ether Targets Amidst ETF Flow Slowdown

Citigroup has reduced its 12-month price targets for Bitcoin (BTC) and Ether (ETH), reflecting a significant slowdown in exchange-traded fund (ETF) inflows. The bank announced this revision this week, indicating a shift in its outlook for the leading cryptocurrencies. This adjustment follows Citigroup's decision to discontinue its forecasts for ETF inflows, a key driver for recent market performance.

The decision to revise price targets is attributed to several factors, including the stalled progress of cryptocurrency legislation in the United States. The lack of clear regulatory frameworks continues to create uncertainty for institutional investors. Furthermore, Citigroup noted weak investor demand as another contributing element to the revised outlook. This suggests a broader cooling of interest or a more cautious approach from market participants.

While specific new price targets were not detailed in the announcement, the move signifies a more conservative stance from the financial institution. Previously, Citigroup had been more optimistic about the potential impact of Bitcoin ETFs, which began trading in the U.S. in January 2024. The initial surge in inflows following the ETF approvals had fueled expectations of further price appreciation for both Bitcoin and Ether.