Citigroup has revised price targets across several crypto related stocks after a sharp downturn in digital asset markets during the final quarter of the year, while maintaining a positive longer term view on the sector. The bank said recent volatility in bitcoin and related tokens warranted a reset in valuation assumptions, particularly after broad declines in publicly listed crypto firms. Despite the adjustments, Citi analysts emphasized that structural adoption trends, institutional participation, and improving market infrastructure continue to support the investment case for select digital asset companies. The reassessment reflects weaker near term sentiment rather than a reversal in strategic outlook, as the bank continues to view crypto equities as leveraged beneficiaries of future market recovery once liquidity conditions stabilize and risk appetite improves across global financial markets.
Among its covered names, Citi reiterated stablecoin issuer Circle as its top pick, maintaining its price target despite the stock’s recent decline. The bank cited Circle’s positioning within regulated digital payments and stablecoin infrastructure as a key differentiator relative to more trading dependent businesses. Other favored names include Bullish and Coinbase, which Citi sees as well placed to benefit from growing institutional participation, particularly in the United States. While Bullish received a lower price target following sector wide weakness, the bank said its business model remains aligned with rising demand from traditional financial institutions. Coinbase’s valuation outlook was left unchanged, reflecting confidence in its scale, product breadth, and role as a primary access point to crypto markets.
Citi also trimmed targets for companies more directly exposed to bitcoin price movements, including Strategy and bitcoin miner Riot Platforms, acknowledging that recent market declines have weighed heavily on performance. Even after the cuts, the bank noted that upside potential remains significant if digital asset prices recover. At the same time, Citi flagged intensifying competition as a factor affecting neutral rated names such as Gemini. Overall, the analysis highlights a more cautious but still constructive stance, with analysts signaling that short term price weakness has not altered their belief in the sector’s longer term relevance. The update underscores how traditional banks are recalibrating expectations without abandoning crypto exposure as part of broader equity coverage.
