Citi Boosts Bitcoin, Ether Forecasts on Resurgent Crypto Activity

Citigroup has raised its forecasts for Bitcoin and Ether, citing stronger crypto activity and a supportive macroeconomic backdrop. The brokerage increased its target for Bitcoin to $113,000 from $82,000 and for Ether to $3,028 from $2,240.

The forecast is based on the expectation that crypto inflows will resume at a slower but steadier pace as advisers and brokerages gradually increase allocations to Bitcoin. Citigroup predicts $5 billion of inflows over the next 12 months.

The US Senate's failure to advance The Clarity Act, aimed at creating a regulatory framework for digital assets, has had mixed effects on the industry. While it narrowed the path to a market-structure bill, it spurred Securities and Exchange Commission rule announcements that dampened negative sentiment.