Investment bank Citigroup has given its outlook on major cryptocurrencies, showing a clear shift in investor interest. The bank now sees more potential in Ether compared to Bitcoin. This change comes from new institutional money entering the market and the chance to earn returns with Ethereum.
Citi recently updated its financial forecasts for these digital assets. It has raised its year-end prediction for Ether to $4,500. At the same time, the bank slightly lowered its Bitcoin forecast to $133,000 for the end of 2025. This move suggests that more investment money is flowing into the Ethereum network.
Ether Finds Its Stride with Big Investors
Analysts at Citi noticed that Ether had a strong comeback over the summer. This boost came from financial advisors and large institutional investors buying it up. Because of this, the bank increased its year-end forecast for Ether. They also expect more growth in 2025, predicting a price of $5,440 within the next 12 months.
The report highlights that exchange-traded funds (ETFs) and digital asset treasuries will be key drivers for Ether’s demand. These are important for its growth in the medium term. Ether also allows users to earn income through “staking” and decentralized finance (DeFi). This makes it a very appealing asset for big institutional investment groups.
Citi pointed out some unknowns for Ether. They include how its network activity will develop and how its value will build up. However, the bank believes the trend of new capital coming in supports a positive outlook for Ether as we head into 2026.
Bitcoin Still the “Digital Gold”
Even with a slightly reduced forecast, Citi stands by Bitcoin’s story as “digital gold.” The bank thinks Bitcoin will still attract a good portion of new investment money. This is especially true when there’s economic uncertainty around the globe.
The reason for the lower price target for Bitcoin involves a mix of economic factors. For example, the U.S. dollar has become stronger, and gold prices have fallen. In this setting, Citi suggests Bitcoin could close 2025 around $181,000. This is based on the idea that investors will keep showing interest and market conditions won’t get worse. Earlier, the bank had set an end-of-2025 target of $133,000 for Bitcoin. Bitcoin currently trades at about $118,747.48.
The bank estimates that year-end money flows into Bitcoin will be about $7.5 billion in its standard scenario. If things go really well, with a strong stock market and higher demand for digital assets, this value could climb even further.
Risks and Future Views
Citi also mapped out a tough situation for Bitcoin. A shrinking economy could push its price down to $83,000. Figuring out a lowest price for Ether, though, is trickier. This is because its network activity and how value is created within its system are less certain.
Overall, the bank restated that both Bitcoin and Ether trade higher than what some basic models suggest. These models look at how many people use them and how active they are. Citi warned that steady demand from investors will be vital. This demand is crucial to keep prices high through the end of 2025 and into 2026.