Citi Boosts Bitcoin Target to $113,000, Sees Crypto as More Stable
Citigroup has raised its 12-month Bitcoin target to $113,000, a 35% increase from current levels. This move follows a significant shift in the bank's outlook on cryptocurrency, which it now sees as a more stable and attractive investment. The bank attributes this change to the SEC's rule announcements, which it believes softened the blow of the CLARITY Act's defeat. Citi also raised its Ethereum target to $3,028, a 12% increase from current prices.
Bitwise CIO Matt Hougan argues that the crypto market has actually benefited from the CLARITY Act's failure, as it has allowed for faster and more aggressively pro-crypto rules from regulators. Hougan points to several winners, including stablecoins, crypto exchanges, tokenization platforms, and revenue-generating tokens. However, he also flags the risk of a new administration reversing course in 2029 and potentially crushing the crypto market.
Citi's new forecast also takes into account the Treasury's bond buyback program, which it sees as a catalyst for momentum across the crypto market. The bank expects slower but stickier ETF inflows, forecasting $5 billion over the next 12 months as advisers and brokerages gradually increase Bitcoin allocations.
The bank's analysts note that rulemaking clarity may substitute for a durable CLARITY Act, but they also flag the risk of a 2028 administration change rolling back agency rules. This concern sits outside their current forecast window, but it highlights the potential risks and uncertainties facing the crypto market.