Citi Sees $113K Bitcoin Target as Institutional Inflows Favor Largest Asset

Citigroup has updated its crypto price targets, predicting that Bitcoin will reach $113,000 and Ether will hit $3,028. The bank's forecast indicates a significant gap between the two assets, with Ethereum expected to rise by just 10.9% compared to a 31.4% increase for Bitcoin.

The reason behind this disparity lies in the projected inflows of institutional money into exchange-traded funds (ETFs). Citi anticipates $5 billion in ETF inflows, which would signal a gradual return of institutional investments. This influx is expected to favor Bitcoin first due to its larger market size and liquidity.

According to the bank's analysis, large investment funds typically invest in Bitcoin before moving into Ether. As a result, the anticipated $5 billion in ETF inflows leaves limited potential for Ethereum to reach its target price.