Citi Sees Bitcoin Soaring to $113,000, Ether to $3,028, Amid Expected Institutional Inflows
Citigroup has updated its crypto price targets, but with a striking difference between Bitcoin and Ether. The bank predicts Bitcoin will hit $113,000, while Ether will reach $3,028. This comes as a surprise, given that Ether has been outperforming Bitcoin in recent months.
The reason for this discrepancy lies in the expected inflows of institutional money. Citigroup forecasts $5 billion in exchange-traded fund (ETF) inflows, which would represent a significant increase in investment in the crypto market.
According to Citi, institutional investors typically start with Bitcoin due to its larger market size and liquidity. This allows them to invest significant amounts without causing significant price fluctuations. Ether, on the other hand, is often invested in after securing Bitcoin investments.
The bank's updated forecast also takes into account a weaker dollar, resulting from government buybacks of older bonds. This would further boost the price of Bitcoin, which has historically performed well in a weak dollar environment.