Bitcoin News Today: Ethereum's Yield Edge vs. Bitcoin's Macro Woes: Citigroup's 2025 Outlook

Citigroup has revised its 2025 price targets for Bitcoin and Ethereum, reflecting shifting investor preferences and macroeconomic dynamics. The Wall Street bank raised its year-end forecast for Ethereum to $4,500 from $4,300, citing strong inflows into exchange-traded funds (ETFs) and corporate digital treasuries as key drivers. Conversely, its Bitcoin target was trimmed to $133,000 from $135,000, with analysts attributing the adjustment to offsetting macroeconomic factors, including a stronger U.S. dollar and weaker gold prices Citi lifts ether outlook, trims bitcoin view-shifting investor flows^[1]. The revised outlook underscores a broader market shift toward yield-generating assets, with Ethereum's staking and decentralized finance (DeFi) infrastructure gaining traction among institutional investors Bitcoin and Ethereum Price Prediction from Citigroup^[2].

The bank's analysis highlights Ethereum's structural advantages over Bitcoin, particularly its ability to offer yield opportunities through staking and DeFi protocols. Institutional adoption and rising financial advisor participation have bolstered Ethereum's momentum, supported by a summer rally in its price. Citigroup projects Ethereum to close 2025 at $4,500, nearly 3% above its current level, with a 12-month target of $5,440. For Bitcoin, the firm acknowledges its role as a macro hedge and store of value but notes that its price remains elevated relative to adoption model estimates, creating near-term headwinds Citi lifts ether outlook, trims bitcoin view as investor flows shift^[3].

Macroeconomic pressures are central to Citigroup's revised forecasts. A stronger U.S. dollar and reduced demand for gold have dampened Bitcoin's appeal as a traditional safe-haven asset. Meanwhile, Ethereum's performance is less tied to these factors, benefiting instead from sustained institutional flows and a growing ecosystem of yield-bearing products. The bank estimates $7.5 billion in year-end flows into Bitcoin through ETFs and corporate treasuries under its base case, though a bear scenario could see Bitcoin drop to $83,000 if recessionary conditions emerge Citigroup Updates Bitcoin and Ethereum Forecasts!^[4].

The divergence in investor behavior between the two cryptocurrencies is a key theme in Citigroup's analysis. While Bitcoin remains the dominant "digital gold," Ethereum's yield advantage is attracting a new class of investors. This shift is evident in the token's summer performance, driven by increased institutional allocations and financial advisors expanding crypto exposure. Citigroup analysts emphasize that sustained inflows will be critical for both assets to maintain current levels and support further growth, particularly as macroeconomic uncertainty persists Citigroup Projects Ethereum Price For 2025 End: Here’s What To Expect^[5].

Long-term, Citigroup remains bullish on both Bitcoin and Ethereum. The firm's 12-month target for Bitcoin stands at $181,000, reflecting confidence in its adoption trajectory, while Ethereum's potential to evolve into a yield-bearing digital asset is seen as a structural tailwind. The bank's outlook hinges on the balance of flows between the two tokens, with Bitcoin retaining its dominance in the macro hedge narrative but Ethereum's growing institutional appeal signaling a potential diversification of market leadership Citi lifts ether outlook, trims bitcoin view as investor flows shift^[3].