Citi Boosts Crypto Forecasts Amid Steady Inflows
Citigroup has raised its 12-month forecasts for Bitcoin and Ether, predicting that cryptocurrency activity will pick up. The bank's target for Bitcoin is now $113,000, up from an earlier forecast of $82,000, while the target for Ether has increased to $3,028 from $2,240.
The bank anticipates that crypto inflows will resume at a slower but steadier rate as advisers and brokerages gradually increase their allocations to Bitcoin. Citi is projecting $5 billion of inflows over the next 12 months.
The bank's prediction comes after the U.S. Senate failed to advance The Clarity Act, a bill designed to establish a digital asset framework. Despite this setback, Citigroup notes that the failure of the bill has spurred Securities and Exchange Commission rule announcements that have dampened negative sentiment.