Citi Sees $113k Bitcoin as Senate Defeat of CLARITY Act Revives Crypto Momentum

Citigroup has increased its 12-month Bitcoin target to $113,000, a significant 35% upside from current levels. The bank also raised its Ethereum forecast from $2,240 to $3,028, about 12% above current prices.

This move comes after the Senate's defeat of the CLARITY Act, which would have imposed stricter regulations on crypto exchanges and stablecoins. Citigroup sees this as a 'temporary but meaningful positive' that softened the blow, although it acknowledges that risk exists for a future administration to roll back agency rules in 2028.

According to Bitwise CIO Matt Hougan, crypto actually gained by losing the CLARITY Act. The bill's collapse allowed regulators to implement faster and more aggressively pro-crypto rules, which have driven up prices since the vote. Hougan cites four specific winners from the bill's failure: stablecoins, crypto exchanges, tokenization platforms, and revenue-generating tokens.

Citi expects slower but stickier ETF inflows going forward, forecasting $5 billion over the next 12 months as advisers and brokerages gradually increase Bitcoin allocations. The bank also points to the Treasury's bond buyback program as a catalyst that revived momentum across crypto broadly.