What to know:
- Citi cut Bitcoin and Ether targets as ETF outflows weakened crypto market sentiment.
- US Bitcoin ETFs saw $4.5B in June outflows, marking their worst month since launch.
- Policy delays and treasury selling risks weighed on Citi’s Bitcoin and Ether outlook.
Citi Bitcoin Ether forecasts were cut after weaker ETF demand and slower U.S. crypto legislation hurt sentiment. Citigroup lowered its 12-month Bitcoin target to $82,000 from $112,000. It reduced its Ether forecast to $2,240 from $3,175.
Reuters reported the changes from a Citi note on Tuesday. In the note, the bank said that the Bitcoin ETF flows have fallen to around $3.3 billion for this year. It has also slashed the expected net inflows into the ETFs during the next 12 months to zero from an initial expectation of $10 billion.
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Citi Bitcoin Ether Forecasts Reflect ETF Outflow Pressure
Citi Bitcoin Ether forecasts had already been reduced earlier in 2026. As reported earlier, the bank lowered its Bitcoin target from $143,000 to $112,000. On the other hand, Ether targets down to $3,175 from $4,304.
“ETF flows, an important driver of prices, have turned negative recently,” Citi added.
The revision came after the reversal in the dynamics of the spot Bitcoin ETFs. In June, US spot Bitcoin ETFs have witnessed net outflows of $4.5 billion. This marks the worst month for these products since they were launched in January 2024.
Citi Bitcoin Ether forecasts have considered a more subdued momentum in terms of U.S. digital asset regulation. According to Citibank, delays in Washington have negatively affected near-term confidence in the crypto space. Policy uncertainty is yet another reason for the lowered targets.
As of now, the CLARITY Act faces delays due to discussions of ethics and other issues. The proposed bill has faced delays because of possible connections between crypto businesses and President Donald Trump.
Citi Warns Policy Delays Could Slow Crypto Adoption
Citi said the timing is crucial for institutional adoption. Investors were expecting that the introduction of clearer regulations would help with cryptocurrency investments. Without a clear timeline, Citi said crypto adoption could slow until a new market catalyst emerges.
Citi Bitcoin Ether forecasts included concern over digital asset treasury companies. These companies hold Bitcoin or other cryptocurrencies in their portfolios. According to Citibank, they could sell them amid market stress.
The CLARITY Act discussions may influence Bitcoin and Ether treasury firms. According to earlier reports, such entities may be subject to CFTC commodity pool regulation. This aspect has been raising doubts regarding entities created based on cryptocurrency holdings.
Why Citi’s Bear Case Matters for Crypto Traders
Citi presented a more pessimistic bear case for the next year. In the bear case scenario set by Citi, the economy experiences a recessionary macroeconomic environment and outflows from ETFs. As a result, Bitcoin will fall to $53,000, and Ether could drop to $1,094.
As of press time, Bitcoin is changing hands at $58,582, and Ether is trading at $1,571. Both assets are trading below its 2025 highs and crucial moving averages. Citi Bitcoin Ether forecasts made investors concerned about ETF outflows and developments of U.S. policy.
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