Citi Sees Crypto Rally Continuing Amid Stronger Market Activity
Citigroup has raised its price targets for Bitcoin and Ethereum, predicting substantial recoveries rather than immediate breakouts to new highs. According to the bank's latest forecasts, Bitcoin could reach $113,000 in a year, while Ethereum may hit $3,028. These estimates imply roughly 35% upside for Bitcoin and about 12% for Ethereum.
The price targets are based on stronger market activity, an improving macro backdrop, and the return of exchange-traded fund inflows. Citi expects around $5 billion of net crypto inflows over the next 12 months as advisers and brokerages gradually increase allocations.
However, the rally still faces several challenges, including high bond yields, inconsistent ETF demand, and unresolved US regulation. The biggest macro obstacle is the bond market, with a 10-year Treasury yield reaching its highest level since 2002 at 5.3%.