Citi Cuts 2027 Bitcoin Target to $75,000, Ethereum to $5,000
C•Citigroup trimmed its 2027 bitcoin price target from $135,000 to $75,000 and cut the Ethereum target from $10,000 to $5,000, citing a 50% drop in mining revenue after the 2024 halving. The bank also warned that concentrated altcoin portfolios and heightened macroeconomic risk could dampen crypto trading volumes and revenue.
1. Forecast Revisions
Citigroup’s research team reduced its 2027 bitcoin target from $135,000 to $75,000 and lowered the Ethereum forecast from $10,000 to $5,000, marking a 44% and 50% cut respectively. This adjustment reflects more cautious assumptions about long-term crypto valuation.
2. Mining Revenue Impact
Analysts highlighted that the 2024 bitcoin halving could shrink miner revenue by roughly 50%, undermining network security incentives and liquidity providers’ profitability. Reduced fees may lead to tighter spreads and lower trading activity.
3. Altcoin Portfolio Risks
Citi noted that Ethereum and altcoin investors hold concentrated positions in a small number of tokens, increasing vulnerability to market swings and regulatory scrutiny. Developers’ reliance on decentralized finance protocols adds execution and smart-contract risks.
4. Potential Trading Revenue Effects
With macroeconomic headwinds and potential Fed rate shifts, the bank expects subdued institutional demand for crypto trading products. Diminished volumes and wider spreads could weigh on Citi’s prime services and derivatives desks.
