Citigroup has raised its Bitcoin and Ether price forecasts, citing stronger cryptocurrency activity, improving market conditions and expectations for renewed ETF inflows.
Citi increased its 12-month Bitcoin price target to $113,000, up from $82,000. The bank also raised its Ether price target to $3,028, compared with its previous forecast of $2,240.
Citi Expects Crypto Inflows to Recover
According to Citi, cryptocurrency inflows could return at a slower but more stable pace over the next year. The bank expects financial advisers and brokerages to gradually increase their Bitcoin allocations.
Citi is also forecasting around $5 billion in crypto inflows over the next 12 months. The return of ETF inflows could provide additional support for Bitcoin and Ether as more investors gain exposure through exchange-traded products.
Bitcoin and Ether See Strong Gains
Both major cryptocurrencies have performed strongly over the past three months. Bitcoin has gained nearly 40%, while Ether has risen about 68% during the same period.
The gains have helped reduce their year-to-date losses to around 4% for Bitcoin and 9% for Ether.
Bitcoin has also climbed about 40% from its July lows. Citi linked the recent crypto momentum to a softer US dollar and changes in broader financial markets.
Crypto Regulation Remains Important
US cryptocurrency regulation remains an important factor for the market. The US Senate recently failed to advance the Clarity Act, a proposed bill aimed at creating a regulatory framework for digital assets.
Citi said the failure reduced the chances of near-term market-structure legislation. However, the bank also pointed to recent SEC rule announcements, which it said helped reduce negative market sentiment.
Citi’s new forecasts show stronger expectations for Bitcoin and Ether over the next 12 months. However, cryptocurrency prices remain sensitive to ETF flows, regulation, interest rates and broader market conditions.
