Citi Cuts Bitcoin, Ethereum Price Targets on Negative ETF Flows

💡 Citi slashes Bitcoin and Ethereum price targets due to ETF outflows, citing market uncertainty.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy.

The $BTC price has been under pressure after Citi analysts reduced their price target to $30,000 from $40,000. The firm also cut its price target for $ETH to $2,500 from $3,500.

Citi's Bearish Outlook

Citi's analysts believe that the recent decline in ETF inflows will continue to weigh on the $BTC and $ETH prices. The firm cites market uncertainty and a lack of clear direction from regulators as contributing factors.

Bitcoin and Ethereum Prices Under Pressure

The $BTC price has fallen by over 10% in the past week, while the $ETH price has declined by 8%. Citi's analysts warn that the $BTC price could fall to $20,000 if the market remains bearish.

ETF Inflows and Outflows

The decline in ETF inflows has been a major contributor to the decline in $BTC and $ETH prices. Citi's analysts believe that the recent outflows will continue to weigh on the market.

What It Means for Investors