Citigroup Cuts Crypto Price Targets, but Bitcoin and Ethereum Keep Falling

Citigroup cut its 12-month price targets for Bitcoin and Ethereum on July 1, but both cryptocurrencies have already dipped lower than those predictions. On Thursday, July 2, 2026, Bitcoin traded near $61,200 and Ethereum around $1,650.

This came after Citigroup lowered its Bitcoin target to $82,000 from $112,000 and Ethereum to $2,240 from $3,175. The bank cited record ETF outflows and stalled US crypto legislation as reasons for the cut. In a bear case scenario, Citigroup values Bitcoin at $53,000 and Ethereum at $1,094.

Despite this, my analysis suggests that the current bounce is a retest from below, not a reversal. The charts show a clear structure of capital rotation out of crypto into higher-conviction bets like equities and AI stocks. This has pushed institutions to trim exposure to higher-volatility assets.