TLDR
- Citi forecasts Bitcoin at $133,000 by December 2025 and $181,000 within 12 months
- Ethereum expected to reach $4,500 by year-end and $5,400 by October 2026
- ETF inflows and institutional adoption driving price predictions
- Bitcoin preferred over Ethereum due to digital gold narrative and market size
- Bear case scenario could see Bitcoin drop to $83,000 during recession
Wall Street investment bank Citi has released updated cryptocurrency price forecasts showing bullish targets for both Bitcoin and Ethereum. The predictions come as institutional investment continues flowing into digital assets through exchange-traded funds.
Bitcoin currently trades around $119,550 according to the bank’s Wednesday report. Citi expects the cryptocurrency to climb to $133,000 by the end of 2025. The 12-month outlook projects Bitcoin reaching $181,000 by October 2026.
The year-end target represents a small adjustment from Citi’s previous $135,000 forecast. The bank maintains that sustained ETF inflows will be the primary driver behind Bitcoin’s price appreciation over the coming year.
Ethereum is trading near $4,407 at present. Citi raised its Ethereum forecast to $4,500 by December 2025, up from an earlier prediction of $4,300. The bank expects Ethereum to hit $5,400 within 12 months.
Multiple Market Scenarios
Citi’s analysis includes several potential outcomes based on different market conditions. The bullish scenario assumes strong equity markets and accelerated ETF flows. Under these conditions, Bitcoin could reach $156,000 by year-end 2025.
The bear case presents a contrasting picture. If recessionary conditions emerge, Bitcoin could fall to $83,000. Ethereum’s bull case target sits at $6,100, while the bear case forecast remains lower.
These wide ranges reflect the volatility inherent in cryptocurrency markets. Both tokens currently trade above levels justified by user activity metrics alone. This premium pricing stems from institutional demand rather than network usage statistics.
Bitcoin Takes Priority
Citi analysts expressed stronger confidence in Bitcoin compared to Ethereum. The bank believes Bitcoin will capture the majority of new institutional investment entering crypto markets. Bitcoin’s established position as digital gold makes it more appealing to traditional investors.
The cryptocurrency’s growing correlation with gold strengthens its investment case. Bitcoin’s longer market history and larger market capitalization provide advantages over competing digital assets. Institutional investors and financial advisors are increasingly adding Bitcoin to client portfolios.
Ethereum faces more complexity in valuation modeling. The challenge comes from measuring user activity and value creation across Layer-2 scaling networks. Despite these uncertainties, Citi still expects positive price movement driven by investment flows.
Regulatory Environment Matters
A favorable regulatory landscape in the United States supports Citi’s optimistic outlook. The bank views positive regulation as a tailwind for cryptocurrency prices. Clear regulatory frameworks encourage institutional participation in digital asset markets.
Exchange-traded fund products have opened crypto investment to traditional finance. Both Bitcoin and Ethereum ETFs have attracted substantial inflows from institutional sources. Digital asset treasuries held by corporations add another layer of demand.
Citi’s forecasts assume continued institutional adoption without major market disruptions. The bank expects demand from new and existing investors to support higher prices through 2026. Macroeconomic conditions remain the primary risk factor that could derail bullish projections.
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