Citi reduces Bitcoin and Ether target as ETF withdrawals increase

Citi reduced their 12-month Bitcoin and Ether predictions as negative flows from ETFs and slow U.S. Crypto legislation affected market sentiment.

Reuters reported Citigroup has lowered their 12-month Bitcoin forecast to $82,000, down from $112,000. Citigroup also reduced its Ether projection to $2,240 in a memo dated on Tuesday from $3,175

Citi’s downgrading is the second this year. As previously, the bank had already reduced its Bitcoin targets from $143,000 down to $112,000, and its Ether targets from $4304 down to $3175 in early 2026. reported.

“ETF flows, an important driver of prices, have turned negative recently,” Citi, according to Reuters.

Bitcoin ETF flows have fallen by $3.3 billion in the first half of this year, according to the bank.

ETF outflows weaken market demand

Citi announced that it has reduced its net ETF investment forecasts for the coming 12 months from $10 billion to zero. The shift in Bitcoin and Ether goals was a major reason for this.

This downgrade follows a sudden drop in demand for spot Bitcoin ETFs. U.S. Bitcoin spot ETFs were reported to have grown in demand earlier this morning. recorded $4.5 billion in net outflows in JuneIt was their worst ever month.

Ether is also suffering from the ETF decline. In recent sessions, traders have reduced their exposure to risky assets and this has led to outflows from spot Ethereum ETFs. Citi warned that investor adoption could be put on hold unless a catalyst is found.

U.S. crypto legislation adds pressure

Citi also pointed out the slow progress of U.S. legislation on digital assets. The bank stated that delays in Washington has reduced the near-term confidence of cryptomarket.

You can also find out more about the following: CLARITY Act has been slowed Ethics concerns relating to Donald Trump’s business interests in cryptography. Bill has passed major hurdles, but is stuck in the middle of a debate over conflict-of interest rules and other provisions.

This legislative delay is significant because institutional investors had hoped for more clarity in U.S. laws to help them adopt the technology. Citi warned that without a clear timeline for adoption, the market could be slowed until a new driver is found.

TD Cowen also warned It is unclear where the bill will go before the midterm elections in November. According to the report, unresolved concerns could slow down the Senate’s progress on the market structure legislation.

Treasury sales risk is a concern for the outlook

Citi also expressed concerns about the possible sale of Bitcoin by digital asset Treasury companies. They may have Bitcoins or other crypto-assets on their balance sheet and be forced to sell them if market conditions worsen.

As before reported According to crypto.news the CLARITY law could impact Bitcoin and Ether treasury businesses by bringing certain structures under CFTC commodities-pool supervision. This debate has created a new layer of uncertainty for firms that are built on large crypto holdings.

Citi’s bear scenario assumes macroeconomic recession and continuing ETF outflows. The bank believes that Bitcoin will reach $53,000 over the course of the year and Ether $1,094 in the scenario.

Bitcoin was recently trading at $58,897 and Ether near $1579.71. The two assets are still far from their highs of 2025 and key long-term averages. Traders will be focusing on ETF flow, U.S. Policy News and whether or not large holders reduce their exposure.