Citi Sees Bitcoin Soar to $113,000 on ETF Inflows and Regulatory Clarity

Citi, a leading financial institution, has revised its 12-month target for Bitcoin (BTC) from $82,000 to $113,000. The bank attributed this increase to the return of capital inflows into exchange-traded funds (ETFs) and a more favorable macroeconomic environment.

The target implies a growth potential of about 35% for BTC. Citi also raised its 12-month forecast for Ether (ETH) from $2,240 to $3,028, indicating a potential growth of around 12%.

The key factor driving Citi's revised expectations is the increase in cryptocurrency-based investment products, including ETFs. The bank believes that inflows into these instruments will develop 'more slowly but more steadily,' as advisors and brokerage firms gradually increase the share of Bitcoin in client portfolios.

Citi associates this scenario with a more consistent expansion of participation by traditional financial intermediaries. Over the next 12 months, cryptocurrency investment products could attract $5 billion, the bank predicts.