Citigroup said it remains constructive on crypto-related equities despite significant declines across digital asset markets toward the end of 2025. In a research note, the bank trimmed several price targets to reflect recent weakness but maintained positive ratings across much of the sector. Analysts said near-term volatility has not altered their longer-term view on institutional adoption and infrastructure-driven growth.
Bitcoin’s pullback has weighed on sentiment across crypto-linked stocks, prompting Citi to adjust expectations while keeping coverage intact. The bank framed the reset as valuation-driven rather than structural, noting that equity performance has lagged underlying progress in regulated market access, custody, and payments infrastructure.
Circle Remains Top Pick
Stablecoin issuer Circle remains Citi’s top pick, with analysts reiterating a $243 price target despite the stock’s sharp decline this quarter. Citi highlighted Circle’s position at the center of regulated dollar-based settlement activity and its exposure to growing institutional use of stablecoins in payments and treasury operations. The bank views stablecoins as a lower-volatility entry point into the crypto ecosystem compared with exchanges or miners.
Citi’s next preferred names include Bullish and Coinbase. The bank said Bullish is well-positioned to benefit from rising institutional participation, particularly in US markets, despite trimming its price target to reflect competitive and market pressures. Coinbase’s target was held steady, with analysts citing its scale, diversified revenue mix, and regulatory positioning as key strengths amid shifting market cycles.
Target Cuts Reflect Competitive Pressures
Other crypto-linked equities saw downward revisions, including Strategy and bitcoin miner Riot Platforms, following recent price declines. Citi said these adjustments reflect higher sensitivity to bitcoin price movements and operating leverage, rather than a deterioration in long-term fundamentals. Neutral-rated Gemini also saw its price target reduced, with the bank pointing to intensifying competition and margin pressure in the exchange sector.
Citi’s analysis underscores a broader institutional view that crypto equities remain a viable long-term allocation despite near-term volatility. The bank emphasized that consolidation, regulatory clarity, and differentiated business models will likely determine relative performance as digital asset markets mature.
