Citigroup Raises Bitcoin, Ether Forecasts Amid Market Resurgence

Citigroup has raised its price targets for Bitcoin and Ether in light of recent strong activity in the crypto market. The brokerage's analysts expect a resumption of ETF inflows, which would further boost prices.

In a note dated Wednesday, Citigroup increased its target for Bitcoin to $113,000 from $82,000, while its target for Ether rose to $3,028 from $2,240.

The firm cited a supportive macroeconomic backdrop and the revival of momentum in crypto markets as reasons for the upgraded forecasts. Notably, Bitcoin has rallied nearly 40% since July lows, narrowing its year-to-date loss to about 4%, while Ether's price surge reached 68% over the same period.

Citigroup also forecasted $5 billion in inflows into crypto markets over the next 12 months. The firm attributed this prediction to a gradual increase in allocations by advisers and brokerages to Bitcoin.