Citigroup has significantly reduced its 12-month price forecasts for both bitcoin and ether, signaling a shift in institutional sentiment toward digital assets.
The bank’s downgrade reflects growing concerns over sustained outflows from spot exchange-traded funds and a broader cooling of investor appetite for cryptocurrencies.
The bank noted that the anticipated steady inflow of institutional capital has stalled, with net flows turning negative.
According to Citigroup, the negative flow dynamics in ETFs are a primary driver of the revised outlook.
The bank noted that the anticipated steady inflow of institutional capital has stalled, with net flows turning negative.
This development undermines the narrative that spot ETFs would serve as a reliable shock absorber for price volatility during market downturns.
The forecast cuts also highlight the impact of regulatory uncertainty.