On July 2nd, Citigroup revised its twelve-month price targets for Bitcoin and Ethereum downwards.
FPG International noted that, as reported by CoinDesk, the bank lowered its Bitcoin target from $112,000 to $82,000 and its Ethereum target from $3,175 to $2,240.
The primary reason for this adjustment is a significant cooling in demand for related exchange-traded funds.
Citigroup no longer anticipates net inflows over the next twelve months.
FPG International suggests this marks a clear departure from the previous narrative, which relied on institutional accumulation to drive valuation recovery.
The report highlighted that spot Bitcoin ETFs experienced approximately $4 billion in net outflows in June, marking the largest monthly withdrawal since their launch.
Factors such as capital outflows, subdued market sentiment, and concerns over selling pressure from digital asset treasuries have weakened the supportive impact of favorable macroeconomic conditions on prices.
The cryptocurrency market requires new sources of demand in the near term to improve its outlook.
If ETF inflows resume consistently, the pressure from these downward target revisions could ease.
However, FPG International analysis indicates that if capital continues to exit the market, the pace of any valuation recovery will be considerably slower.
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