Citi Cuts Bitcoin and Ether Price Targets Amid Slowing ETF Flows
Citi has lowered its 12-month price targets for bitcoin and ether, citing a cooldown in ETF-driven demand as a key factor.
If you've been hoping a big bank would hand you a rosy crypto forecast, Citi just did the opposite. The financial giant has trimmed its 12-month price targets for both bitcoin and ether, pointing to a noticeable slowdown in flows into crypto exchange-traded funds as a primary reason for the more cautious outlook.
ETF flows matter a lot in this context — think of them as a barometer for how much fresh institutional and retail money is actually entering the crypto market. When those flows are strong, prices tend to get a tailwind. When they dry up, the bullish case gets harder to make, and that's essentially what Citi is flagging here.
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It's worth noting that Citi isn't alone in watching ETF demand closely. Since spot bitcoin ETFs launched in the U.S. earlier in 2024, they were celebrated as a potential game-changer for crypto adoption. But sustained inflows were never guaranteed, and any sign of momentum fading tends to prompt analysts to recalibrate their models — which is exactly what appears to have happened here.
For everyday investors, a target cut from a major Wall Street bank can feel alarming, but it's important to keep perspective. Price targets are educated guesses based on current data, not promises. Citi revising its numbers downward simply means the analysts there see less near-term upside than they previously expected, largely because one of crypto's biggest demand drivers — ETF buying — has cooled off for now.
Whether flows pick back up depends on a mix of factors including broader market sentiment, regulatory developments, and macroeconomic conditions. For now, Citi is urging a more tempered set of expectations heading into the next year. Continue reading at CoinDesk.
