Global financial giant Citigroup has updated its cryptocurrency forecasts, signaling a shift in institutional investor sentiment. The bank raised its outlook for Ethereum (ETH) while lowering its projections for Bitcoin (BTC), highlighting evolving trends in capital flows within the crypto market.
According to Citi analysts, Ethereum’s growing adoption in decentralized finance (DeFi) and its upcoming technological upgrades are key factors driving increased investor confidence. “Institutional interest in Ethereum has strengthened, reflecting its utility beyond a store of value,” the report noted.
In early October, Ethereum demonstrated a 3.3% price increase, slightly outpacing Bitcoin, which grew 2.7% over the same period. The modest divergence in performance underscores a broader trend: investors are diversifying their portfolios beyond Bitcoin, seeking assets with active networks and real-world applications.
Citi’s revision comes amid continued volatility in the cryptocurrency market, where macroeconomic factors, regulatory developments, and investor sentiment all play crucial roles. While Bitcoin remains the dominant digital asset by market capitalization, Ethereum’s momentum suggests that alternative cryptocurrencies are gaining traction among institutional players.
Market watchers will likely monitor these trends closely in the coming months, as Ethereum’s network upgrades and growing adoption may continue to shift capital flows, potentially reshaping the landscape of top crypto holdings.
