- Citigroup raised its 12-month Bitcoin price target to $113,000 from $82,000 and its Ethereum target to $3,028 from $2,240.
- The bank expects approximately $5 billion of crypto inflows over the next 12 months as financial advisers and brokerages gradually increase Bitcoin allocations.
- Citi pointed to stronger crypto market activity, a more supportive macro environment and renewed ETF inflows as key factors behind its updated forecasts.
Citigroup has raised its 12-month price forecasts for Bitcoin and Ethereum following a sharp recovery across the crypto market.
The bank increased its Bitcoin target to $113,000 from $82,000, while lifting its Ethereum forecast to $3,028 from $2,240, according to a Wednesday client note.
Citi also expects around $5 billion to flow into crypto over the next 12 months.
Rather than expecting one large wave of institutional demand, the bank sees inflows developing at a slower and steadier pace as financial advisers and brokerages gradually increase their Bitcoin allocations.
Bitcoin and Ethereum Extend Three-Month Rally
Citi’s revised targets follow substantial gains for both cryptocurrencies over the past three months.
Bitcoin has climbed nearly 40% during that period, while Ethereum has gained approximately 68%.
The rally has narrowed Bitcoin’s year-to-date decline to around 4%, while Ethereum remains down approximately 9% for the year.
Citi partly attributed Bitcoin’s recovery from its July lows to a weaker U.S. dollar.
The bank said the macro backdrop became more supportive following the U.S. Treasury’s recent move to buy back longer-dated bonds.
Citi Expects $5 Billion in Crypto Inflows
Renewed investment flows are another factor behind Citi’s more positive 12-month forecasts.
The bank expects approximately $5 billion in crypto inflows during the coming year, supported in part by a resumption of ETF demand.
Citi expects the process to be gradual as advisers and brokerage platforms increase their exposure over time.
The bank also pointed to stronger overall crypto market activity as part of the reasoning behind its higher Bitcoin and Ethereum targets.
Regulatory Uncertainty Remains a Risk
Citi also highlighted regulatory uncertainty following the U.S. Senate’s failure to advance the CLARITY Act last week.
The proposed legislation was intended to establish a broader regulatory framework for digital assets.
Citi said the failure to advance the bill narrowed the path toward comprehensive crypto market-structure legislation.
However, the bank noted that subsequent rule announcements from the Securities and Exchange Commission helped ease some of the negative sentiment following the Senate setback.
Citi’s updated outlook now places Bitcoin at $113,000 and Ethereum at $3,028 over the next 12 months, with ETF inflows, institutional allocations and broader macro conditions among the key factors to watch.
