Citigroup (Citi) announced major downward revisions to its 12-month price targets for both Bitcoin (BTC) and Ethereum (ETH).
This represents the second time Citi has moved its target goalposts lower. Earlier in the year, the bank had already trimmed its expectations, but the latest adjustments reflect a deeper, structural shift in how Wall Street is pricing cryptocurrencies amidst an ongoing capital exodus and political gridlock.
The New Revisions: Base Case vs. Bear Case Bitcoin (BTC) Previous Target: $112,000 (Down from an initial $143,000 forecast) New 12-Month Target: $82,000 Pessimistic (Bear Case) Scenario: $53,000 Ethereum (ETH) Previous Target: $3,175 (Down from an initial $4,304 forecast) New 12-Month Target: $2,240 Pessimistic (Bear Case) Scenario: $1,094 Three Core Catalysts Behind the DowngradeCiti’s quantitative analysts, led by data tracked across institutional corridors, point to a combination of macroeconomic headwinds and institutional stagnation rather than a single market shock.
The Complete Reversal of ETF Demand Stalled U.S. Legislation & The Washington GridlockA major pillar of Wall Street’s original bullish thesis was the expected passage of comprehensive U.S. digital asset legislation.
However, progress has ground to a halt. The Clarity Act, designed to map out exact jurisdictional boundaries between the SEC and CFTC and provide rules for stablecoin issuers, remains completely stalled in Congress. Without legal protections, institutional asset managers are choosing to keep their capital on the sidelines.
Strategic Capital Rotation and Corporate Treasury RisksFurthermore, Wall Street is growing increasingly anxious about corporate "digital asset treasury companies." Firms that accumulated massive reserves of Bitcoin over the last few years are now facing operational debt pressures under a "higher-for-longer" interest rate environment, creating a lingering threat of large-scale corporate liquidations.
Adoption is Shifting to InfrastructureDespite the pessimistic price targets, Citi's broader perspective on blockchain technology remains highly active. While the bank sees speculative tokens heading for an extended cooling period, it notes that institutional development is shifting internally.
Through its own internal project, Citi Token Services, the banking giant is continuing to invest heavily in tokenized commercial bank deposits, digital asset custody, and multi-chain interoperability.
The overarching consensus from Wall Street is clear: while the era of easy retail hype and speculative ETF-driven rallies faces a steep macro correction, the transition toward enterprise-grade, compliant financial infrastructure is moving forward behind closed doors.
Disclaimer. The data provided is collected by the author and is not sponsored by any company or token developer. This is not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coinidol.com. Readers should do their research before investing in funds. Brought from CoinIdol.com.
