Citigroup Boosts Bitcoin, Ethereum Price Targets Amid Crypto Market Rebound

Citigroup has increased its price targets for Bitcoin and Ethereum, citing a rebound in inflows into cryptocurrency-based ETFs and favorable macroeconomic conditions.

The bank raised its forecast for Bitcoin to $113,000 from $82,000 last month, while the target for Ethereum was revised to $3,028 from $2,240. This implies potential gains of about 35% and 12%, respectively, from current levels.

Citi expects inflows into crypto ETFs to be 'slower but more sustainable,' with advisers and brokerage firms gradually increasing Bitcoin allocations in client portfolios. This could generate around $5 billion in net inflows over the next 12 months.

The bank also linked the crypto market rebound to the US Treasury's decision to buy back long-term government bonds, which helped restore momentum after several months of digital assets lagging other risk assets.