Citigroup Ups Bitcoin Target to $113,000 on Expected ETF Inflows and SEC Reforms

Citigroup has raised its 12-month price target for Bitcoin to $113,000, citing expected inflows of $5 billion into the crypto market over the next year. This new target is a significant increase from the previous $82,000, and it also includes a higher price target for Ethereum, which is now forecast to reach $3,028.

The firm attributes the higher outlook to a combination of factors, including a recent price rebound, which has seen Bitcoin rise by about 40% and Ethereum by 68% over the past three months. Additionally, the firm notes that the U.S. Securities and Exchange Commission's (SEC) recent actions have eased negative market sentiment and spurred regulatory reforms at the administrative level.

Matt Hougan, chief investment officer at Bitwise, agrees that the SEC's actions have had a positive impact on the market, but also warns that regulatory reforms at the administrative level do not guarantee long-term stability and may be subject to change with a future change of administration or shifts in regulatory leadership.