Citigroup has officially lowered its one-year price projections for Bitcoin and Ethereum, signaling a shift in sentiment regarding institutional appetite for digital assets. The bank’s downward revision follows a notable cooling period for U.S.-based crypto investment vehicles.
The financial giant pointed to the exhaustion of ETF-driven momentum as a primary catalyst for the adjustment. After an initial surge in interest, consistent inflows into spot products have effectively stalled, leaving market analysts questioning the next wave of capital deployment.
Regulatory uncertainty continues to weigh heavily on the sector. Citi noted that the current absence of robust legislative frameworks in the United States has hampered broader institutional adoption and dampened investor enthusiasm in the short term.
As the market navigates this period of consolidation, investors are keeping a close watch on macroeconomic indicators that could shift the narrative. For now, the bank’s updated forecast reflects a more cautious approach to the crypto landscape.
