Citi Updates Crypto Forecasts: BTC Target Rises, But Ether Remains Uncertain

Citi has updated its price targets for Bitcoin and Ether, citing continued investor demand and a favorable regulatory environment. The bank sets a 12-month target of $132,000 for BTC and $4,500 for ETH, a modest increase from previous forecasts of $181,000 and $5,400.

Citi analyst Alex Saunders notes that further gains next year should come from investor demand, with both tokens already trading above statistical measures based on user activity. The bank favors Bitcoin over Ether due to its larger size, longer history, and clearer 'digital-gold' narrative.

Bitcoin currently trades above Citi's adoption model estimate of $83,000, driven by ETF flows and regulation. The bear case assumes a recession and weaker equities, while the bull case assumes even stronger flows.