- Citigroup updates long-term forecasts for Ethereum and Bitcoin.
- Ethereum target raised due to rising ETF inflows.
- Bitcoin target trimmed, facing macroeconomic pressures.
Citigroup raised its 2025 Ethereum year-end target to $4,500 while lowering Bitcoin’s to $133,000 due to increased ETH ETF inflows and macro pressures.
The adjustment reflects Ethereum’s rising appeal over Bitcoin, driven by demand for yield-bearing assets and macroeconomic factors, potentially influencing institutional investment strategies.
Citigroup revises its 2025 year-end price predictions, raising Ethereum’s (ETH) target to $4,500 amid increased ETF inflows. The decision underscores growing investor interest in yield-bearing crypto assets. The bank’s analysts have downgraded the outlook for Bitcoin (BTC) to $133,000, driven by macroeconomic pressures. Capital rotation favoring Ethereum is observed among institutional investors.
The adjustment comes as the market sees nearly $14 billion in net inflows into ETH spot ETFs year-to-date. The influx reflects increased demand from both individual and institutional investors. Stronger economic conditions, including a firm US dollar and weaker gold, contribute to Bitcoin’s tempered forecast. The emphasis on Ethereum staking adds potential value to the network.
Institutional investors
Institutional investors are significantly driving this trend, with corporate treasuries like Bitmine opting for Ethereum holdings. Growing Layer 2 activity bolsters Ethereum’s appeal.
Historical Trends
Historical trends suggest continued price adjustments when new ETFs launch. Market observers expect further Ethereum strength amid broader crypto ecosystem liquidity shifts, reflecting yield and staking advantages.
Citigroup Analyst (Internal Note), Citigroup Research, “Ethereum is attracting incremental flows thanks to yield, staking, and ETF product design. Bitcoin remains a macro hedge, but a firmer dollar and weaker gold limit upside for now.” – Source
