Citi Just Flipped the Script on Crypto's Power Duo—And Ether Is the New Favorite

Core Insights - Wall Street is experiencing a significant shift in institutional perspectives on cryptocurrency, with Citigroup raising its year-end outlook for ether while lowering its bitcoin forecast, indicating a potential turning point in asset preference [1][2]. Group 1: Market Trends - Investors are increasingly prioritizing yield-generating assets over those focused solely on price appreciation, reflecting a fundamental recalibration in financial markets [2]. - Ether's ability to generate returns through staking and decentralized finance platforms is gaining institutional preference compared to bitcoin's "digital gold" narrative [2][6]. Group 2: Price Targets - Citigroup's target for ether is set at $4,500, suggesting nearly 3% upside from its current trading level of $4,375, while bitcoin's target of $133,000 indicates approximately 12% upside from $118,747 [3]. - Looking ahead, Citigroup anticipates ether to reach $5,440 within the next 12 months, while bitcoin is projected to hit $181,000 [3]. Group 3: Rationale Behind Forecasts - The downward revision of bitcoin's forecast is attributed to macroeconomic factors such as a stronger dollar and declining gold prices, indicating external market forces are impacting its performance [4]. - Citigroup raised its ether forecast following a significant price increase over the summer, driven by heightened crypto buying from institutional investors and financial advisors [5]. Group 4: Market Maturity - The shift towards ether signifies a maturing cryptocurrency market where fundamental factors are becoming increasingly important, as ether's utility within the Ethereum network creates multiple revenue streams that appeal to traditional finance professionals [6].