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Citigroup analysts significantly lowered their forecasts for Bitcoin and Ethereum. The Bitcoin forecast was reduced from $112,000 to $82,000, and for Ethereum from $3,175 to $2,240.

One of the main reasons for this revision was a change in expectations for crypto ETFs. Previously, the bank assumed that about $10 billion in capital would flow into the funds over the next 12 months, but now it forecasts no inflows.

Analysts note that the market will not see new investors until new growth catalysts emerge. Citi also pointed to a lack of regulatory progress in the U.S., concerns about Bitcoin sales by companies holding crypto reserves, and capital flowing into the artificial intelligence sector.

Under the bearish scenario, which assumes a U.S. recession and continued outflows from ETFs, analysts suggest Bitcoin could drop to $53,000 and Ethereum to $1,094 over the next 12 months.
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