Citi Slashes Crypto Forecasts Amid ETF Outflows and Regulatory Limbo

Citigroup has revised its forecasts for Bitcoin and Ether, citing weakening investor appetite and negative exchange-traded fund flows. In a note dated Tuesday, the brokerage lowered its target for Bitcoin to $82,000 from $112,000, while trimming its Ether forecast to $2,240 from $3,175.

The decision was driven by Citigroup's reduction in its 12-month net ETF inflow assumption to zero from $10 billion. The firm noted that ETF flows have turned negative recently, with Bitcoin ETF flows down about $3.3 billion so far this year.

Citigroup also pointed out that slow progress on US crypto legislation and concerns over potential Bitcoin selling by digital asset treasury companies have hit investor sentiment. As a result, the weakness in Bitcoin has coincided with a rotation into AI-related assets.