Citi Downgrades Crypto Exchange Gemini After Cutting Bitcoin, Ethereum Price Targets
Gemini’s stock dropped over 16% after Citigroup downgraded its rating from Neutral to Sell and reduced its price target from $13 to $5.50, citing expectations that profitability remains years away. Trading on Nasdaq as GEMI, Gemini was priced at $5.95 per share, well below its IPO price of $28 from September 2023, which had valued the firm at $3.3 billion. Founded in 2014 by the Winklevoss twins, Gemini offers a range of crypto services to retail and institutional clients. In early February, Gemini announced a withdrawal from the U.K., EU, and Australia to cut costs, giving affected users two months to withdraw funds, and laying off 25% of its staff while increasing its use of AI for efficiency. Citi also lowered its price forecasts for Bitcoin and Ethereum, attributing broader crypto market declines to disappointing U.S. inflation data and geopolitical tensions. The outlook for meaningful U.S. crypto regulation in 2024 has weakened due to political uncertainty ahead of upcoming midterm elections. Despite bearish analyst sentiment, some prediction markets remain optimistic about Bitcoin’s near-term price.
