Citi Sees 35% Upside for Bitcoin, Citing $5 Billion Inflow into ETFs

Citi analysts have revised their Bitcoin price target to $113,000, citing an expected inflow of around $5 billion into Bitcoin ETFs over the next 12 months.

This forecast is higher than Citi's previous estimates and represents a 35% upside from current prices. The bank attributes this increase to the resumption of investment volumes in Bitcoin by financial advisers and brokerage firms.

Citi notes that the US Treasury's programme to buy back long-term bonds has also helped restore momentum in the crypto market, while new rules announced by the SEC have eased negative investor sentiment.

The Clarity Act, a bill establishing rules for cryptocurrency trading, failed to pass in the US Senate, limiting regulatory scope but allowing for faster and more industry-friendly decisions from regulators.