Citigroup raises 12-month price forecasts for Bitcoin and Ether
Citigroup has revised its Bitcoin and Ether targets upward, citing market volatility and macroeconomic conditions.
Financial institution Citigroup has updated its 12-month price forecasts for Bitcoin and Ether, citing increased market volatility, favorable macroeconomic conditions, and renewed ETF inflows.
Bitcoin and Ether Targets Raised
In a published report, Citigroup raised its 12-month target price for Bitcoin (BTC) from $82,000 to $113,000. The institution also increased its Ether (ETH) target price from $2,240 to $3,028.
Capital Inflow Expectations
The institution projects that capital inflows will resume with a slower yet steady momentum as advisors and institutions gradually increase their allocations to crypto assets.
A total of $5 billion in capital inflows is expected into crypto assets over the next 12-month period.
Legal Developments and Regulations
The US Senate failed in its attempt last week to pass The Clarity Act bill, which aims to establish a comprehensive regulatory framework for digital assets.
Although the failure of the Clarity Act narrows the path regarding market structure regulation, it was noted that this triggered rule announcements by the US Securities and Exchange Commission that helped reduce negative sentiment.
Recent Performance in Cryptocurrencies
Over the past three-month period, Bitcoin gained approximately 40 percent and Ether gained 68 percent. With this rise, year-to-date losses narrowed to 4 percent and 9 percent, respectively.
Having risen 40 percent since its July lows, Bitcoin found support from a weakening dollar driven by the US Department of the Treasury's move to buy back long-term bonds.