Citi Sees Brighter Future for Bitcoin Amid Higher ETF Inflows

Citigroup has updated its price targets for both Bitcoin and Ethereum, setting them at $113,000 and $3,028 respectively. These forecasts imply very different levels of potential growth, with Bitcoin expected to increase by about 31% from its current price and Ethereum by only 11%. This disparity in upside is largely due to the fact that Ethereum has already skyrocketed 53% in the last 90 days, leaving it closer to its target.

Citigroup's revised targets are heavily influenced by expected fund demand, with the bank anticipating an additional $5 billion in inflows over the next year. This projection translates to roughly $417 million each month, which is modest compared to Bitcoin's $1.73 trillion market valuation.

However, the 5.17% yield on 10-year Treasury bonds makes Ethereum's potential gain of only about double this return look thin. On the other hand, Bitcoin presents a much wider buffer against stable Treasury returns with its potential 31% gain.