Citigroup Raises Bitcoin, Ether Forecasts Amid Crypto Upswing

Citigroup has increased its target prices for Bitcoin and Ether, citing stronger crypto activity and a supportive macroeconomic backdrop. The brokerage raised its forecast for Bitcoin to $113,000 from $82,000 and for Ether to $3,028 from $2,240.

The move comes after a 40% rally in Bitcoin and a 68% surge in Ether over the past three months, which has narrowed their year-to-date losses to about 4% and 9%, respectively. This upswing can be attributed to the soft dollar, following the US Treasury's recent decision to buy back longer-dated bonds, which revived momentum across crypto markets.

Citi also forecasts $5 billion of inflows over the next 12 months as advisers and brokerages gradually increase allocations to Bitcoin. The brokerage expects crypto inflows to resume at a slower but steadier pace, following a setback in regulatory efforts. Despite the US Senate's failure to advance the Clarity Act, aimed at creating a regulatory framework for digital assets, Citi notes that this has spurred Securities and Exchange Commission (SEC) rule announcements that have dampened negative sentiment.

The brokerage's revised targets reflect its expectations of continued growth in the crypto market. While some may see this as an optimistic forecast, others may view it as a cautious estimate given the current market conditions.