Citigroup Doubles Down on Cryptocurrency Price Targets

Citigroup has raised its Bitcoin price target to $113,000 from $82,000, according to a recent note. The revised forecast is based on improved input from various components, including activity, macroeconomic factors, and exchange-traded fund (ETF) flows.

According to Citigroup analyst Alex Saunders, the increase in the price target draws from all three components of their process. Saunders stated that 'The increase draws from all three components of our process: activity, macro, and ETF flows.'

The bank had previously lowered its Bitcoin forecast in June, cutting it to $82,000 from $112,000, but has since revised it upwards after noticing a resurgence in ETF inflows. Citigroup now expects $5 billion of inflows over 12 months, up from zero in their previous estimate.

Citigroup's Ethereum price target has also been raised to $3,028, leaving room for growth above the current price. However, the new forecast implies only about 12% upside potential from the current price of around $2,700.