Citi Boosts Bitcoin Price Target to $113,000 Amid Stronger Market Activity

Citi, a major bank, has updated its Bitcoin price forecast, raising its 12-month target to $113,000 from $82,000, a 37.8% increase. This revision reflects stronger crypto market activity and a more supportive macro environment, according to the bank.

Citi expects $5 billion of crypto inflows over the next 12 months, which will be gradual rather than sudden. The bank anticipates that institutional money will continue to flow into digital assets, driven by a measured pace of allocations from advisers and brokerages.

The revised forecast is influenced by both regulatory and macro factors. While the Senate's failure to advance the Clarity Act weighed on sentiment, subsequent rule announcements from the Securities and Exchange Commission helped to ease negative sentiment. Additionally, a softer US dollar and the Treasury's move to buy back longer-dated bonds have contributed to a more supportive macro backdrop.

Citi emphasizes that its revised target is a reference point rather than a trading signal, and that sustained demand over time is the key to its outlook. The bank's forecast assumes that institutional allocators will continue to show up, quarter after quarter, rather than just once.