Citi Sees Crypto Rally Continuing with New Price Targets
Citi has increased its 12-month price forecasts for Bitcoin and Ethereum, citing stronger market activity, an improving macro backdrop, and the return of exchange-traded fund inflows.
The bank raised its target for Bitcoin to $113,000 from $82,000, which implies a roughly 35% upside for the asset. For Ethereum, Citi lifted its forecast to $3,028 from $2,240, indicating around 12% potential growth.
Despite this bullish outlook, the crypto rally still faces several challenges. High bond yields and inconsistent ETF demand are major obstacles, as investors may opt for risk-free alternatives with higher returns.
Citi expects around $5 billion of net crypto inflows over the next 12 months, driven by advisers and brokerages gradually increasing allocations. However, this is still a cautious view compared to its previous forecast when it assumed no fresh ETF demand.