Citigroup Cuts Crypto Targets While Maintaining Long-Term Bullish Stance

Source: CryptoTale Original Title: Citigroup Cuts Crypto Targets While Keeping Long-Term Faith Original Link: https://cryptotale.org/citigroup-cuts-crypto-targets-while-keeping-long-term-faith/

• Citigroup cut targets but repeated confidence in crypto firms built for regulation.
• ETF outflows pressured prices while selective inflows signaled capital rotation now.
• Bitcoin volatility eased as buyers defended dips, and market supply stayed tight today.

Wall Street bank Citigroup refreshed its digital assets stock coverage after broad crypto market declines while maintaining a constructive stance on the sector, according to an October 19 research report. “Despite recent token volatility, we remain bullish on digital asset stocks,” analysts led by Peter Christiansen wrote, framing the changes as target adjustments rather than a shift in long-term expectations.

The update followed sharp price swings across cryptocurrencies and related equities, raising a central question for markets: is current volatility altering long-term adoption trends or merely resetting near-term valuations?

Price Targets Adjusted Across Key Crypto Stocks

Citigroup reiterated Circle Financial as its top pick, keeping a $243 price target despite the stock’s decline to $83.60, according to the report. Christiansen ranked Bullish and Coinbase as the next preferred names, citing institutional participation and U.S.-based traditional finance interest. Bullish saw its target reduced to $67 from $77 while trading near $44, while Coinbase’s target remained $505 compared with a current price around $242.

The buy-rated strategy reduced the target to $325 from $485 after shares fell toward $160, still implying roughly 100% upside from recent levels. Citigroup also cut Riot Platforms to $23 from $28 as shares traded near $14, while neutral-rated Gemini dropped to $13 from $16 due to increasing competitive challenges.

ETF Flows Show Pressure as Capital Rotates

A chart published by Wu Blockchain using data from SoSoValue showed sustained pressure across U.S. spot crypto exchange-traded funds through mid-December. On Dec. 18 ET, daily total net flows fell to negative $161.32 million, while total net assets stood at $111.04 billion, with Bitcoin trading near $84,582 during ongoing redemptions.

Spot Bitcoin ETFs recorded $161 million in net outflows, while spot Ethereum ETFs posted $96.62 million in outflows, extending a six-day streak of withdrawals, according to Wu Blockchain. In contrast, spot Solana ETFs logged $13.16 million in inflows, and spot XRP ETFs added $30.41 million, signaling selective capital rotation rather than uniform exits.

Bitcoin Stabilizes After Volatile Correction

Digital assets rebounded earlier this year after policy signals supported crypto development, prompting regulators to ease litigation and explore tailored rules for trading, custody, and taxation.

Even with the policy shift, the crypto sector underwent a drastic correction in November when Bitcoin fell by over $18,000 in one month, signaling the steepest decline since 2021. Bitcoin is currently trading at $88,362.86, having increased 0.57% within the last 24 hours and after going through intraday volatility and stabilizing.

As a result, the market cap of Bitcoin went up to $1.76 trillion, the fully diluted valuation reached $1.85 trillion, and the trading volume for the past 24 hours decreased by 38.12% to $36.28 billion, which indicates lower turnover.

Total and circulating supply remained at 19.96 million BTC out of a 21 million maximum, while the 24-hour chart showed a brief U.S. session sell-off followed by an overnight rebound toward $88,500.