Citi Group Adjusts Bitcoin and Ethereum Price Targets Amid Shifting Market Dynamics

Financial giant Citi Group has updated its price targets for Bitcoin (BTC) and Ethereum (ETH), signaling a nuanced outlook for the two leading cryptocurrencies. While maintaining a bullish long-term perspective, the firm has adjusted its near-term expectations, citing evolving investor preferences, yield opportunities, and macroeconomic factors.

Key Takeaways

• Citi sets 12-month price targets of $181,000 for Bitcoin and $5,440 for Ethereum.

• The firm has lowered its year-end Bitcoin target to $133,000 from $135,000.

• Ethereum's year-end target has been raised to $4,500 from $4,300.

• Citi remains more positive on Bitcoin due to its "digital gold" narrative and broader market flows.

• Ethereum's appeal is boosted by staking, DeFi, and increasing institutional interest.

Revised Price Targets

Citi has revised its price predictions for both Bitcoin and Ethereum. The firm's 12-month outlook projects Bitcoin reaching $181,000 and Ethereum hitting $5,440. For the end of the current year, Citi now anticipates Bitcoin at $133,000, a slight reduction from its previous $135,000 target. Conversely, Ethereum's year-end target has been increased to $4,500, up from $4,300.

Bitcoin's Outlook

Despite the slight trim in its year-end target, Citi maintains a strong conviction in Bitcoin's long-term potential, largely driven by its established "digital gold" narrative and its role as a macro hedge. However, factors such as a strengthening U.S. dollar and a weaker gold price have been cited as headwinds for near-term upside. The bank notes that Bitcoin is currently trading above statistical measures based on activity, supported by inflows from ETFs and digital asset treasuries. Citi also outlined a bear case scenario where Bitcoin could fall to $83,000 if macroeconomic conditions worsen and risk appetite declines.

Ethereum's Ascending Trajectory

Ethereum, on the other hand, has seen its short-term expectations boosted. Citi attributes this upward revision to surging flows, increased interest in stablecoin regulation, tokenization, and the rise of Digital Asset Treasuries (DATs). The growing appeal of Ethereum as a yield-generating asset through staking and decentralized finance (DeFi) platforms is also a significant driver. The bank highlights that more companies are accumulating substantial amounts of Ethereum for their treasuries, contributing to consistent demand.

Market Drivers and Future Prospects

Citi's analysis suggests that institutional adoption and positive regulatory environments are supporting flows into both cryptocurrencies. While Bitcoin is favored for its size, history, and "digital-gold" narrative, Ethereum's yield-generating capabilities are attracting a different segment of investors. The firm emphasizes that sustained inflows into both Bitcoin and Ethereum will be crucial for achieving these price targets. Looking ahead, Citi sees a continued positive trajectory for both assets, with Bitcoin serving as a store of value and Ethereum evolving into a yield-bearing digital asset.

### Key Takeaways

• Bitcoin, ethereum get bullish 12-month price targets from Citi, Sherwood News.

• Citi lifts Bitcoin, Ethereum price forecasts. Here are the new targets By Investing.com, Investing.com.

• Citi Group Lowers Year-End Target for Bitcoin (BTC) While Raising Ethereum (ETH) Expectations: Report, The Daily Hodl.

• Citi Lifts Ethereum Forecast and Trims Bitcoin as Flows Tilt Toward Yield, TipRanks.

• Bitcoin and Ethereum Price Prediction from Citigroup, CryptoDnes.bg.