Citigroup has significantly lowered its price expectations for Bitcoin and Ethereum over the next 12 months, citing diminished investor interest, reduced inflows into exchange-traded funds (ETFs), and a lack of progress in U.S. digital asset legislation as factors harming the outlook for both cryptocurrencies.

In a report released on Tuesday, Citi reduced its Bitcoin price target from $112,000 to $82,000 and cut its Ethereum target from $3,175 to $2,240.

Bitcoin was last trading at $58,864.27, its lowest level since September 2024 and roughly half the all-time high of $126,223.18 reached in October last year. Ethereum was last trading around $1,585.63, hitting its lowest point since April 2025.

Currently, both Bitcoin and Ethereum are trading below their long-term moving averages, reflecting bearish market sentiment. Citi's bear-case scenario projects Bitcoin falling to $53,000 and Ethereum dropping to $1,094 over the next year, assuming a macroeconomic downturn and persistent ETF outflows.

Citi stated that this revision is based on its decision to lower its forecast for net ETF inflows over the next 12 months from $10 billion to zero.

The report noted that "ETF flows are a significant price driver but have recently turned negative," adding that year-to-date, Bitcoin ETF flows have decreased by approximately $3.3 billion. Citi expects broad investor acceptance of Bitcoin to remain subdued until a new catalyst emerges.

The report also highlighted that slow progress on U.S. cryptocurrency legislation and concerns over potential Bitcoin sales by digital asset management firms have dampened investor sentiment. This weakness coincides with a shift of capital towards assets related to artificial intelligence.