Citigroup has released a new research report updating its projections for the crypto market. The banking institution provided base and bear scenarios for both Bitcoin and Ethereum, outlining a wide range of possible outcomes in the year ahead.
According to Citigroup’s projections, Bitcoin will climb to $231,000 over the next year in a bull case scenario. Meanwhile, the firm set its base case at $181,000, while the bear case forecasts a retreat to $82,000. This follows an analysis that Bitcoin could close 2025 at $132,000, a level that would mark a new all-time high if achieved.
The firm highlighted that the cryptocurrency continues to trade above statistical models tied to user activity. It also pointed to ongoing positive flows driven by institutional adoption, with expectations that financial advisors and professional investors will continue allocating to Bitcoin. Citigroup’s report showed that Bitcoin is currently capturing the majority of incremental capital entering the digital asset sector, strengthening its dominant position in the market.
Ethereum Price Targets Placed Below Bitcoin
The forecast also included additional targets for Ethereum. Citigroup projected a bull case of $7,300 for ETH over the next twelve months, with $5,400 as the base case and $2,000 as the bear case. Remarkably, Citigroup had earlier asserted that Ethereum would trade around $4,300 by year-end, a price it trounced during this spirited run to $4,957 in August. However, the altcoin leader lost momentum following a period of volatility, tanking to $3,820 in September.
Despite the optimistic projection, the report raised more uncertainty regarding Ethereum’s demand profile compared to Bitcoin. Citigroup noted that investor flows into ETH remain less predictable and user activity on its network is more challenging to forecast. This caution was reflected in the target structure for the altcoin king relative to Bitcoin.
Institutional Demand Seen as Key Factor
Citigroup’s report highlighted that institutional adoption remains the key catalyst for both Bitcoin and Ethereum price growth in the near term. Analysts anticipate that inflows will continue as regulatory clarity improves and more financial institutions begin offering crypto exposure to their clients.
Additionally, the report stated that Bitcoin stands to benefit the most from these inflows, with Ethereum facing comparatively greater uncertainty due to questions surrounding network usage and investor confidence.
Evans Kelvin
