Citi Sees $113K Bitcoin Price as Institutions Pour In

Citi has raised its price forecasts for Bitcoin and Ether, predicting that Bitcoin will hit $113,000 by next year. This represents a 31% increase from its current value of around $85,975.

The bank also expects Ether to reach $3,028, which is an 11% rise from its current price near $2,730.

Citi's updated forecasts take into account the expected influx of institutional money, with a projected $5 billion in exchange-traded funds (ETFs) inflowing into Bitcoin first. This is because institutions typically invest in the largest and most liquid asset, which is currently Bitcoin.

The bank notes that Ether has already seen significant growth over the past 90 days, rising by 54.5% compared to Bitcoin's 35.6%. However, this rapid increase may have absorbed much of its remaining upside, leaving Bitcoin better positioned to reach Citi's target price.