Citi Boosts Bitcoin Target to $113K Amid Market Recovery

Citi, one of the world's largest banks, has increased its target price for Bitcoin to $113,400 over the next year. This significant change in outlook comes after a mid-August market recovery and is attributed to stronger cryptocurrency activity, a more supportive macroeconomic environment, and renewed ETF inflows.

The bank's analysts expect around $5 billion in crypto inflows over the next year, with financial advisers and brokerages gradually increasing BTC allocations. They also acknowledged the recent failure of the CLARITY Act in the Senate but argued that subsequent announcements from the SEC and CFTC helped soften its negative impact on sentiment.

Citi's change in outlook for Bitcoin has had an even more dramatic effect on its Strategy valuation, with a 60%+ increase since summer lows. The bank now targets MSTR at $240, maintaining a 'buy' rating and attributing roughly 34% of the projected upside contribution to further BTC appreciation.