• Citi increases Ethereum year-end target to $4,500, citing strong ETF inflows
  • Bitcoin forecast slightly reduced to $133,000 due to macroeconomic headwinds
  • Both cryptocurrencies maintain bullish 12-month outlooks despite near-term adjustments

Citi has revised its cryptocurrency price targets, elevating its Ethereum forecast while making a modest downward adjustment to its Bitcoin outlook, according to the bank's latest research report. The move reflects shifting institutional investment patterns and divergent macroeconomic pressures affecting the two largest digital assets.

The bank now projects Ethereum will reach $4,500 by year-end, up from its previous target of $4,300, while maintaining a 12-month price target of $5,440. Bitcoin's year-end target was trimmed to $133,000 from $135,000, though the bank maintained its 12-month projection of $181,000 for the flagship cryptocurrency.

"The adjustment reflects stronger-than-expected ETF-related inflows for Ethereum and some macroeconomic headwinds for Bitcoin," said a person familiar with the matter, who requested anonymity because the research isn't public. The bank's analysts pointed to a stronger US dollar and weaker gold prices as factors influencing Bitcoin's near-term trajectory.

Citi continues to favor Bitcoin as "digital gold" in its long-term thesis, noting the cryptocurrency's established position and consistent institutional inflows. However, recent weeks have shown Ethereum gaining momentum, particularly following the approval and subsequent strong performance of spot Ethereum ETFs in the United States.

Efforts to reach Citi representatives for additional comment were unsuccessful Thursday afternoon. The bank's trading desk reported increased client inquiries about Ethereum exposure throughout the week, according to people familiar with the flows.

While Bitcoin faces pressure from traditional safe-haven assets, Ethereum appears to be benefiting from its broader utility within decentralized finance and growing institutional comfort with its technological foundation. The divergence in near-term targets highlights how cryptocurrency markets are maturing, with different assets responding to distinct fundamental drivers rather than moving in lockstep.

The bank's research noted that institutional investors are increasingly differentiating between cryptocurrency investments based on use cases and risk profiles, rather than treating the asset class as monolithic. This sophistication comes as major financial institutions deepen their cryptocurrency research capabilities and product offerings.

Citi's updated forecasts arrive during a period of heightened regulatory scrutiny of digital assets, though the bank's analysis suggests that approved ETF products have provided a legitimate pathway for institutional capital regardless of ongoing regulatory debates. The research specifically cited ETF flow data as a key factor in the Ethereum target increase.

Correction: An earlier version of this article misstated Bitcoin's previous year-end target. It was $135,000, not $134,000.