Citigroup and JPMorgan Update Bitcoin and Ethereum Price Targets for Year-End 2025
Citigroup (Citi) and JPMorgan have released updated price targets for Bitcoin (BTC) and Ethereum (ETH), reflecting shifting investor sentiment and macroeconomic factors. While both firms remain bullish on the long-term prospects of cryptocurrencies, their short-term forecasts diverge slightly.
Citigroup's Outlook: Ethereum Gains Favor
Citigroup raised its year-end price target for Ethereum to $4,500, citing strong inflows from Exchange Traded Funds (ETFs) and digital asset treasuries. This reflects a growing preference for assets that can generate yield through staking and decentralized finance (DeFi) platforms.
The brokerage slightly trimmed its Bitcoin forecast to $133,000 from a previous estimate of $135,000. Citi analysts cited offsetting macro factors, including a stronger dollar and weaker gold prices, as reasons for the adjustment. Despite the trim, the firm maintains its "digital gold" narrative for Bitcoin, expecting it to attract a significant share of incremental flows.
JPMorgan's Bullish Bitcoin Stance
In contrast to Citi, JPMorgan indicated that Bitcoin is undervalued relative to gold and could see significant upside, reaching $165,000 by year-end 2025. This bullish outlook is driven by anticipated institutional adoption, ETF inflows, corporate treasuries, and potential state-level reserves in the U.S.
JPMorgan believes Bitcoin will outperform gold in the second half of 2025. This prediction is based on factors such as increasing mainstream acceptance and the potential for price stabilization and reduced volatility over time.
Key Drivers and Risks
Both Citi and JPMorgan emphasize the importance of ETF inflows as a key driver of Bitcoin's price variation. Any slowdown in inflows or regulatory hurdles could limit upside potential. For Ethereum, increased adoption and potential yield generation via staking and DeFi platforms are critical factors.
Risks to the forecasts include macroeconomic uncertainties, such as interest rate hikes and geopolitical tensions. A recessionary scenario could significantly impact Bitcoin prices, potentially pushing them down to $83,000, according to Citi's bear case.
Investment Strategies and Implications
The updated price targets suggest potential investment strategies for crypto investors. Investors may favor Bitcoin for higher upside potential, per JPMorgan's outlook, while Ethereum could appeal to those focused on blockchain utility and diversified crypto exposure.
The bullish forecasts could spur retail "fear of missing out" (FOMO). However, macro risks may prompt caution, favoring hedged positions or stablecoin-based strategies. Overall, the updated price targets signal a positive outlook for crypto, with Bitcoin likely to lead due to stronger institutional backing.
| Analyst | Cryptocurrency | Year-End 2025 Price Target |
|---|---|---|
| Citigroup | Bitcoin (BTC) | $133,000 |
| Citigroup | Ethereum (ETH) | $4,500 |
| JPMorgan | Bitcoin (BTC) | $165,000 |
