Citi Raises Bitcoin Forecast to $113,000 Amid ETF Demand Revival

Citigroup has upgraded its 12-month price forecast for Bitcoin to $113,000, a significant increase from its previous target of $82,000. The bank also raised its Ether forecast to $3,028, up from $2,240. According to the bank, the improved outlook is driven by stronger crypto activity, a more supportive macroeconomic backdrop, and renewed demand through exchange-traded funds (ETFs).

The U.S. Treasury's decision to buy back more longer-dated government debt has contributed to a softer dollar and helped revive momentum across crypto markets, the bank said. This move, combined with the subsequent Securities and Exchange Commission (SEC) rule announcements, has reduced some of the negative sentiment surrounding the setback of the Digital Asset Market Clarity Act in the U.S. Senate.

Citi expects $5 billion in crypto inflows over the next 12 months, as advisers and brokerages gradually raise their Bitcoin allocations. This is a significant reversal from the bank's earlier forecast, which was lowered due to ETF demand weakening and progress on U.S. crypto legislation slowing.