Citigroup Doubles Down on $113K Bitcoin Price Prediction Amid ETF Frenzy

Citigroup, a major U.S. financial institution, has increased its 12-month Bitcoin price prediction to $113,000, up from $82,000. The bank also raised its Ether forecast to $3,028 from $2,240. Citigroup attributes this forecast to heightened crypto activity, a positive macro environment, and renewed ETF inflows. The bank expects new ETF launches and increased allocations from financial advisers and brokerages to drive the $5 billion expected to flow into the crypto market next year.

The forecast comes despite a mixed backdrop, with Bitcoin's price around $83,700 on October 1. The bank's note also commented on U.S. crypto regulations, stating that the Senate's failure to advance the CLARITY Act reduced the likelihood of passage of market structure legislation. Subsequent announcements from the SEC contributed to the diminishment of negative price pressures.

Citigroup's new Bitcoin price prediction represents a $31,000 increase from its previous target, or roughly 38%. Its Ether target rose by $788, or 35%. The bank's assessment does not rely on the resolution of all regulatory uncertainties, but rather on a slow but steady increase in funds flowing to BTC-specific ETF products.