Citigroup has raised its 12-month bitcoin price forecast to $113,000 from $82,000, pointing to stronger crypto activity and a return of ETF inflows.
Citi lifts its targets
The bank also raised its ether target to $3,028 from $2,240, citing the same supportive macroeconomic backdrop.
In a note dated Wednesday, Citi said it expects inflows to resume at a slower but steadier pace as advisers and brokerages gradually increase their allocations to bitcoin.
It now forecasts $5 billion of inflows over the next 12 months.
Clarity Act setback
The updated outlook comes after the U.S. Senate failed last week to advance the Clarity Act, a bill aimed at creating a regulatory framework for digital assets.
The vote was a setback for the broader industry, though Citi said the fallout was softened by fresh moves from regulators.
The bank wrote in its note:
“The Clarity Act’s failure narrowed the path to a market-structure bill, yet spurred Securities and Exchange Commission (SEC) rule announcements that dampened negative sentiment.”
A three-month rally
Bitcoin and ether have rallied nearly 40% and 68%, respectively, over the past three months, narrowing their year-to-date losses to about 4% and 9%.
After months of lagging broader risk assets, bitcoin has climbed 40% from its July lows.
A softer dollar, which followed the U.S. Treasury’s recent move to buy back longer-dated bonds, has helped revive momentum across crypto markets.
