Citigroup Raises BTC Target to $113,000 as ETF Inflows Resume
Financial services giant Citigroup has raised its target prices for Bitcoin and Ether. The bank's analysts now forecast that the price of Bitcoin will reach $113,000 within the next year, up from their previous estimate of $82,000. This represents a 35% increase over current prices.
Citigroup also increased its target price for Ether to $3,028, which is a 12% gain from its previous forecast of $2,240. The bank cites the resumption of inflows into exchange-traded funds (ETFs) and supportive macroeconomic conditions as reasons for these revised forecasts.
The analysts at Citigroup expect slow but steady inflows into ETF products like Bitcoin and Ether over the next 12 months, totaling around $5 billion. This is a reversal from earlier this year when there were net outflows of $5.8 billion from U.S.-based spot Bitcoin ETFs as of July 13.
The bank's analysts attribute the recent uptick in inflows to the SEC's rule announcements and the U.S. Treasury's move to buy back longer-dated bonds, which helped revive momentum across the crypto market.