Citi Doubles Down on $113,000 Bitcoin Forecast
Citigroup has increased its 12-month Bitcoin price target by $31,000, from $82,000 to $113,000. This revised forecast comes as crypto activity has strengthened, ETF inflows have resumed, and market conditions have become more favorable.
The bank's latest outlook takes into account stronger crypto activity, economic conditions, and its new expectation for crypto investment product inflows. Citi expects $5 billion in crypto investment product inflows over the next 12 months, a significant increase from its previous assumption of no net buying.
The Treasury's decision to buy back longer-dated bonds and a weakening U.S. dollar were among the factors cited in Citi's outlook for digital assets. A weaker dollar has historically made investors more willing to take risks, including in speculative assets such as cryptocurrencies.
Citi's revised outlook also points to a stronger crypto regulatory environment. The Securities and Exchange Commission has moved to use its existing powers to write rules for the industry during the remainder of the current administration.