Citi lowers Bitcoin and Ether outlook as crypto ETF inflows slow

Citigroup has revised its price outlook for Bitcoin and Ether, citing weaker-than-expected demand for cryptocurrency exchange-traded funds (ETFs). The bank believes slower institutional investment through these products could limit the pace of gains for the two largest digital assets in the near term.

Crypto ETFs have become a key gateway for traditional investors seeking exposure to digital currencies without directly owning them. Strong inflows into these funds have historically supported higher cryptocurrency prices, but recent demand has fallen below market expectations, prompting analysts to adopt a more cautious stance.

According to Citi, institutional participation remains an important driver of the cryptocurrency market, and future price performance will largely depend on renewed investor interest in ETFs. Broader economic factors—including interest rates, inflation, and global financial conditions—are also expected to influence demand for digital assets.

Despite lowering its near-term forecasts, the bank maintains that Bitcoin and Ether continue to have long-term growth potential as digital assets gain wider acceptance among investors and financial institutions. However, Citi expects market volatility to persist until stronger investment flows and more favorable macroeconomic conditions emerge.