Citigroup Raises Bitcoin Target to $113,000 Amid Robust Crypto Activity

Citigroup has increased its Bitcoin target to $113,000 over the next 12 months. This is a significant bump from its previous prediction of $82,000. The bank also raised its Ether target to $3,028 from $2,240. The price increases are expected to be driven by robust cryptocurrency market activity, more benign macroeconomic conditions, and strong ETF inflows. In July, Citigroup had reduced its Bitcoin target due to negative ETF flows.

According to Citi, financial advisors and brokerages are warming up to Bitcoin again, with expected inflows of approximately $5 billion over the coming 12 months. This is a significant improvement from the bank's previous assumption of zero net ETF inflows. Despite the U.S. Senate's failure to advance the Clarity Act, the failure's impact has been offset by regulatory announcements from the Securities and Exchange Commission.