Citigroup has sharply cut its cryptocurrency price forecasts. What was considered a cautiously optimistic outlook six months ago is now seen as a flaw. The bank lowered its 12-month Bitcoin price target from $112,000 to $82,000, and cut its Ethereum price from $3,175 to $2,240, according to the original report. More important than the numbers themselves is the reason: Citi no longer expects any net inflows into U.S. crypto ETFs over the next year, after previously anticipating $10 billion.

This decline points to a deterioration in liquidity at a faster pace than many expected from sellers. Bitcoin ETFs have lost roughly $3.3 billion in outflows so far this year. Daily indicators have clearly turned downward, and sustained selling has forced financial institutions to reassess the entire catalyst plan they had relied on. If the year started with hope that ETF inflows would act as steady demand, that assumption has now evaporated.