Citi Boosts Bitcoin, Ether Forecasts to $113,000, $3,028

Citi, a leading financial institution, has raised its 12-month price target for Bitcoin to $113,000, a significant increase from the previous forecast of $82,000. The bank has also increased its Ether forecast to $3,028 from $2,240.

The revised forecasts are based on several key factors, including stronger activity across crypto markets, a more supportive macroeconomic environment, and a resumption of inflows into crypto exchange-traded funds (ETFs). Citi expects cryptocurrency inflows to return at a slower but steadier pace as financial advisers and brokerages gradually increase their allocations to Bitcoin.

Bitcoin and Ether have posted strong gains over the past three months, with Bitcoin rising nearly 40% and Ether gaining about 68%. The year-to-date losses for both cryptocurrencies have narrowed to roughly 4% and 9%, respectively.

Citi's revised outlook comes despite a recent setback for U.S. cryptocurrency legislation, the Clarity Act, which failed to advance in the Senate. However, the bank notes that subsequent SEC rule announcements have helped reduce some of the negative sentiment surrounding the setback.