Citigroup Raises Bitcoin Forecast to $113,000 Amid ETF Inflows

Citigroup has raised its forecast for Bitcoin's price to $113,000 by next year, citing the return of money into exchange-traded funds (ETFs) and supportive economic conditions. This represents a gain of around 35% from current levels.

The bank also lifted its target for Ether to $3,028 from $2,240, implying a 12% increase. Citi expects $5 billion in inflows into crypto investment products over the next 12 months, with the pace of investments expected to be slower but stickier.

Financial advisers and brokerages are likely to raise their Bitcoin allocations in small steps, according to Citigroup. This is a change from the past year, when spot Bitcoin ETFs saw net outflows.