Citi Lowers Crypto Price Targets Amid Regulatory Boost

Citi has updated its price targets for Bitcoin (BTC) and Ethereum (ETH), expecting modest upside into year-end. The bank now forecasts prices of $132,000 for BTC and $4,500 for ETH by the end of the year, down from previous targets of $181,000 and $5,400.

This adjustment is based on the assumption that investor demand will drive further gains next year, with both tokens already trading above statistical measures based on user activity. According to Citi, institutional investors and financial advisers are increasing their crypto allocations, helped by a favorable regulatory environment in the U.S.

The bank favors Bitcoin over Ethereum due to its larger size, longer history, and clearer 'digital-gold' narrative, which should attract more incremental flows. However, it notes that Ether forecasts carry more uncertainty due to difficulties modeling user activity and Layer-2 network value accrual.