Citigroup slashed its 12-month price targets for Bitcoin and Ethereum on July 1, 2026, sending both cryptocurrencies to multi-month lows before modest recoveries on Thursday. The bank cut Bitcoin’s forecast to $82,000 from $112,000 and Ethereum to $2,240 from $3,175, citing record ETF outflows and stalled US crypto legislation. Bitcoin traded near $61,200 after gaining 2.17% while Ethereum hovered around $1,650, up 2.42%.
Citi reduced its net ETF inflow assumption to zero from $10 billion, noting US Bitcoin ETF flows have turned negative by approximately $3.3 billion in 2026. June saw record redemptions of roughly $4 billion from spot Bitcoin ETFs as institutions rotated capital into high-conviction plays including the SpaceX IPO and AI equities. Analysts attributed the shift to elevated interest rates and geopolitical uncertainty prompting allocators to trim exposure to volatile assets.
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FXnCO Insight
** Thursday’s bounce appears to be a technical retest rather than a trend reversal, suggesting traders should watch for confirmation above key resistance before re-entering long positions.
Source: Finance Magnates