Citi Lifts 12-Month Bitcoin Target to $113K, Ethereum to $3K

Citi Lifts 12-Month Bitcoin Target significantly to $113,000 from $82,000, while also raising its Ethereum target to $3,028 from $2,240. These adjustments reflect increased activity in cryptocurrency markets, a positive macroeconomic environment, and renewed inflows into exchange-traded funds (ETFs).

Both revised targets represent an approximate 35% increase from the bank's previous estimates. Bitcoin is currently trading around $83,900, and Ethereum is near $2,700. Achieving these targets would imply an upside of about 35% for Bitcoin and 12% for Ethereum.

Citigroup anticipates a resumption of inflows at a more gradual but consistent pace, projecting $5 billion in crypto inflows over the next 12 months. This is expected as financial advisors and brokerages incrementally increase their allocations to Bitcoin. This forecast suggests a turnaround, given that spot Bitcoin ETFs experienced a net outflow over the 12 months ending in September, with $4.51 billion exiting in June alone.

The rally preceding this upgrade has been substantial, with Bitcoin and Ethereum gaining nearly 40% and 68%, respectively, over the past three months. This performance has reduced their year-to-date losses to approximately 4% and 9%. Spot Bitcoin ETFs have recorded nine consecutive sessions of inflows since September 17, totaling about $3.08 billion, surpassing a similar nine-day run in August.