Citi Sees 113k Bitcoin, 3k Ether in Next 12 Months

Citi, a major financial institution, has set ambitious price targets for Bitcoin and Ether in its latest digital-asset outlook. The bank forecasts Bitcoin to reach $113,000 in the next 12 months, representing a potential upside of around 35% to 40% from its current trading range of around $80,000. Ether, on the other hand, is expected to reach $3,028, with the bank's forecast implying a more modest recovery from recent trading levels.

The bank's estimates rely on assumptions about institutional demand, cryptocurrency adoption, exchange-traded fund flows, and broader financial conditions over the coming year. Citi's outlook for Bitcoin is driven by its growing institutional accessibility and scarcity characteristics, while Ether's valuation is tied to expanding blockchain usage and economic demand for the underlying token.

Citi's analysis highlights the importance of institutional demand in driving the price of Bitcoin, with the bank noting that U.S. spot Bitcoin ETFs have accumulated substantial assets since their launch in January 2024. The bank's framework also takes into account the fixed issuance schedule of Bitcoin, with the network's maximum supply of 21 million BTC and reduced new issuance following the April 2024 halving.