Citicorps adjusted the price expectations for bitcoin and Taifeng for the next 12 months. The line reduced the target price of bitcoin from $1.12 million to $82,000 and expected to be revised downwards from $3175 to $2240 from the Inn. Citicorp believes that the weakening of spot ETF funds, the slowing down of digital asset legislation in the United States and the potential for the collapse of encrypted treasury are stifling market sentiment.
ETF Financial Flows from positive to negative
Reuters quoted Citi report that ETF remained an important variable affecting the price of encrypted assets, but that the recent financial flows had turned negative. Citicorp thus reduced the net flow of encrypted ETF for the next 12 months from $10 billion to zero.
The Bank also mentioned that the net outflow of bitcoin ETF funds since this year was about $3.3 billion. In the United States, real bitcoin ETF recorded about $4.5 billion in net outflows in June, creating the worst single-month performance since the product was listed in January 2024. ETF has also recently seen financial outflows, indicating that investors ' willingness to allocate risk assets remains weak.
United States legislation slows down institutional expectations
Citi also mentioned that slow progress in digital asset legislation in the United States also weakened market confidence in the entry of short- and medium-term institutions. The market would have expected a clearer regulatory framework to facilitate the scaling up of traditional funding, but the relevant bill still lacks a clear timetable.
It was mentioned that the advancement of the CIATY Act was affected by conflicts of interest and differences of provisions. The ethical controversy surrounding the relationship between the encryption interests of Trump slowed down the pace of consideration of the bill. TD Cowen also warned that, prior to the mid-November elections, uncertainty remained as to whether the market structure bill would move forward smoothly.
Treasury's risk of being sold is at stake.
Citicorp also included potential sales pressure on the secure treasury as one of the risks. Such companies add bitcoin or other encrypted assets to their balance sheets, which can become passive or active sellers at market pressures, thereby magnifying price fluctuations.
In a pessimism scenario, the flag assumed that the United States economy was going into recession, while ETF continued to eject. In this scenario, the Bank expects that bitcoin may fall to $53,000 in the coming year, and that the fare may fall to $1094.
At the time of the release of the report, Bitcoin had reported about US$ 58897, and the Inn had reported about US$ 1579.71. The market will continue to be concerned about the change in ETF funding, the progress of US policy and whether large holders continue to slow down.