Citi Boosts Bitcoin Forecast to $113,000 Amid ETF Inflows

Financial services giant Citigroup has increased its forecasts for Bitcoin and Ether. According to Reuters, Citi raised its 12-month target for Bitcoin from $82,000 to $113,000 and for Ether from $2,240 to $3,028.

The increases represent a rise of around 35% and 12% respectively based on the current prices of BTC and ETH. The bank expects slow but steady inflows into exchange-traded funds as advisers and brokerages favor gradual increases in Bitcoin allocations.

Citi forecasts $5 billion of inflow over the next 12 months, which is a reversal from the year-to-date net outflows of $5.8 billion experienced by U.S. spot Bitcoin ETFs until July 13. The bank attributes this change to supportive macroeconomic conditions and the resilience of the cryptocurrency market in the aftermath of the Senate's rejection of the Clarity Act.

The Treasury's decision to buy back longer-dated bonds revived momentum across the crypto market, helping it break out of a months-long slump. Citi believes that this move, combined with the SEC's rule announcements, has dampened negative sentiment and contributed to the recent price increases for Bitcoin and Ether.