By Rashika Singh
Citigroup has updated its projections for the prices of ether and bitcoin, factoring in evolving investment patterns and the broader economic landscape. The financial institution adjusted its year-end forecast upwards for ether while making a minor downward revision to its bitcoin outlook.
A trend observed is that investors are demonstrating a growing preference for ether, attracted by its ability to generate yield, compared to bitcoin, the leading cryptocurrency, which primarily relies on price appreciation for returns.
As of 0530 GMT, the Wall Street firm’s bitcoin price target of $133,000 indicates a potential increase of about 12% from its current trading value of $118,747.48. The ether target price is set at $4,500, suggesting an approximate 3% increase from its existing level of $4,375.
Looking ahead to the following year, Citi anticipates further gains, setting a 12-month target of $5,440 for ether and $181,000 for bitcoin.
The slight reduction in the year-end bitcoin forecast is attributed to countervailing macroeconomic forces, including a strengthening US dollar and weaker performance from gold.
Even though bitcoin’s trading price exceeds estimates based on adoption models, the brokerage maintains its “digital gold” viewpoint, predicting it will continue to capture a significant portion of new investment.
Citi’s analysts boosted their year-end expectation for ether, pointing to the substantial price surge experienced during the summer, fueled by heightened crypto purchasing activity from institutional investors and financial advisors.
The firm anticipates a modest increase in ether’s price by the end of 2025, supported by considerable inflows from exchange-traded funds and digital asset reserves.
Citi’s core scenario assumes a solid $7.5 billion influx into bitcoin by year-end. A more optimistic scenario hinges on stronger equity market performance and increased demand. For ether, the positive outlook is driven by greater adoption and the possibility of generating yield through staking and decentralized finance platforms.
In a bearish scenario, bitcoin prices could decline to $83,000 if recessionary economic conditions materialize. However, modeling a downside for ether is more challenging due to uncertainties surrounding network activity and how value accrues, according to the brokerage.
Both cryptocurrencies are currently trading above levels suggested by user-activity metrics. Citi emphasizes that continued investor demand will be crucial for sustaining prices through the end of the year and into 2026.
(Reporting by Rashika Singh in Bengaluru; Editing by Harikrishnan Nair)