Citigroup Cuts Bitcoin and Ethereum Price Targets as ETF Outflows Weigh on Crypto Market

Wall Street banking giant Citigroup has sharply lowered its 12-month price targets for Bitcoin (BTC) and Ethereum (ETH), reflecting growing concerns over weakening investor sentiment, heavy spot ETF outflows, and uncertainty surrounding U.S. cryptocurrency regulation.

The financial institution, which manages approximately $2.6 trillion in assets, reduced its Bitcoin price forecast from $112,000 to $82,000, while its Ethereum target was cut from $3,175 to $2,240. This marks Citigroup’s second downward revision in 2026 after previously lowering its Bitcoin target from $143,000 to $112,000 and its Ethereum forecast from $4,304 to $3,175.

The revised outlook comes as the crypto market faces mounting pressure from persistent capital outflows. According to market data, U.S. spot Bitcoin ETFs recorded $4.5 billion in net outflows during June, making it the largest monthly withdrawal since the products launched in 2024. Over the past nine trading sessions alone, Bitcoin ETFs have seen approximately $2.41 billion worth of BTC leave investment funds, with BlackRock’s iShares Bitcoin Trust (IBIT) accounting for a significant share of institutional redemptions.

Ethereum investment products have also experienced weaker demand. Spot Ethereum ETFs posted roughly $370 million in cumulative outflows over the last nine trading sessions, while BlackRock’s ETHA reportedly registered substantial investor withdrawals on Tuesday.

Regulatory uncertainty has added another layer of caution across the digital asset market. The likelihood of the U.S. Clarity Act becoming law this year has fallen to 39% on prediction platforms Polymarket and Kalshi. Market sentiment has also been affected by renewed scrutiny surrounding President Donald Trump’s reported $1.4 billion cryptocurrency disclosure, which has sparked ethics and conflict-of-interest debates.

Bitcoin remains under selling pressure despite historically strong seasonal performance in July. The leading cryptocurrency briefly dropped to $57,747 before recovering to trade around $58,600. Daily trading volume increased by roughly 13%, highlighting heightened market activity following Citigroup’s revised outlook.

Analysts at BIT, formerly known as Matrixport, noted that July has traditionally been one of Bitcoin’s strongest months. However, they expect the market to remain in a consolidation phase throughout the summer due to the absence of major bullish catalysts. The firm added that subdued trading activity and elevated downside risks could make income-generating strategies, such as selling upside call options, attractive for investors seeking additional yield.

Ethereum also remained under pressure, trading near $1,576 after touching an intraday range between $1,549.25 and $1,600.29. Unlike Bitcoin, Ethereum’s 24-hour trading volume declined by around 7%, suggesting softer participation from traders as investors continue to monitor ETF flows, regulatory developments, and broader market conditions.