Citigroup slashed its 12-month forecasts for bitcoin and ether, saying weakening investor appetite, ​negative exchange-traded ​fund flows and a lack of progress on U.S. digital asset legislation have hurt the outlook for the two largest cryptocurrencies.

The brokerage, ⁠in a note dated Tuesday, lowered its target for bitcoin to $82,000 from $112,000 and trimmed its ether forecast to $2,240 from $3,175.

Bitcoin was last trading at $58,864.27, its weakest level since September 2024, having halved in value from an all-time ​high of $126,223.18 ‌in October last year. ⁠Ether was last ⁠at $1,585.63, its lowest since April 2025.

Crypto markets have struggled this year amid ​heightened market volatility, investor hype around big expected IPOs ‌and persistent ETF outflows that track the assets.

Both ⁠cryptocurrencies are trading below their long-term moving-day averages, reflecting bearish sentiment. Citi's bear-case scenario, which assumes recessionary macroeconomic conditions and continued ETF outflows, values bitcoin at $53,000 and ether at $1,094 over the next year. 

Citi said its revision was driven by its decision to cut its 12-month net ETF inflow assumption to zero from $10 billion.

"ETF flows, an important driver of prices, have turned negative recently," it said, adding that bitcoin ETF ‌flows were down about $3.3 billion so far this year. ⁠The brokerage expects broader investor adoption to remain ​on hold until a new catalyst emerges.

It also said that slow progress on U.S. crypto legislation and concerns over potential bitcoin selling by digital asset ​treasury companies ‌have hit investor sentiment, with the weakness coinciding with ⁠a rotation into AI-related assets.

(Reporting ​by Rashika Singh in Bengaluru; Editing by Sonia Cheema)