TLDR
- Citi raised Bitcoin’s price target to $132,000 by end of 2025 and $181,000 in 12 months
- Ethereum forecast at $4,500 by year-end and $5,440 within 12 months
- Strong ETF flows and growing institutional adoption driving price increases
- Bitcoin preferred over Ethereum due to “digital gold” narrative and larger share of market flows
- Favorable U.S. regulatory environment expected to continue supporting crypto growth
The major Wall Street bank Citi has revised its price forecasts for the two largest cryptocurrencies upward, citing stronger than expected investment flows and increasing institutional adoption. The new projections show growing confidence in crypto markets, especially for Bitcoin.
In a note to clients released on October 2, 2025, Citi outlined its updated expectations for both cryptocurrencies. The bank now sees Bitcoin reaching $132,000 by the end of this year, with a 12-month target of $181,000.
For Ethereum, Citi projects a year-end price of $4,500 and expects it to climb to $5,440 within 12 months. At the time of the report, Bitcoin was trading around $119,550, while Ethereum was at approximately $4,407.
The bank’s analysts wrote that they anticipate “modest upside into year-end, with further gains expected next year due to investor demand.” Both tokens are currently trading above statistical measures based on user activity, according to the report.
Citi attributes this performance to strong inflows from exchange-traded funds (ETFs) and digital asset treasuries. The positive flow backdrop is expected to continue as more institutional investors and financial advisors initiate crypto investments.
Institutional Adoption Driving Growth
The primary driver behind these bullish forecasts appears to be continued institutional investment. ETF flows in particular are highlighted as a key factor supporting the projected price increases for both cryptocurrencies.
Citi mentioned that a favorable regulatory environment, especially in the United States, is helping to boost confidence in the crypto market. This regulatory climate is expected to act as a tailwind for prices going forward.
Between the two major cryptocurrencies, Citi expressed a stronger preference for Bitcoin over Ethereum. The bank’s analysts noted that Bitcoin “captures an outsized portion of incremental flows into crypto markets.”
Bitcoin’s larger size, longer history, and clearer “digital-gold” narrative make it more attractive to institutional investors than Ethereum, according to the report. The bank also highlighted Bitcoin’s strengthening correlation with gold, which underscores its growing role in investor portfolios.
Price Scenario Analysis
Citi outlined several scenarios for both cryptocurrencies. For Bitcoin, while the base case sees the price reaching $181,000 in 12 months, the bull case could be even higher if inflows exceed expectations.
The bank’s scenarios span wide ranges. Bitcoin could finish 2025 as high as $156,000 if equity markets rally and investment flows accelerate. However, under recessionary conditions, the price could fall to as low as $83,000.
For Ethereum, the forecast contains greater uncertainty. Citi noted that “Ether forecasts are more uncertain due to the complexities of modeling user activity and value accrual from Layer-2 networks.” The bull case for Ethereum by year-end is $6,100, though its bear case is much lower.
Despite the uncertainty, Citi suggests that sustained flows could still drive meaningful price appreciation for Ethereum. The bank also notes that Ethereum may benefit from staking and yields linked to decentralized finance (DeFi).
The bank cautions that macro risks such as recessionary pressures could still derail their bullish outlook. The forecasts assume continued positive investment flows and a stable regulatory environment.
At the time of the report’s publication on October 2, 2025, Bitcoin was trading at $120,451.71 and Ethereum at $4,484.09.
