Citigroup has raised its 12-month price forecasts for bitcoin and ether, citing renewed inflows into cryptocurrency exchange-traded funds (ETFs), increased market activity, and a favorable macroeconomic environment. The revised targets were detailed in a research note published by the financial institution.
According to the report, the bank set a new mid-term price target of $120,000 for bitcoin (BTC) and $6,000 for ether (ETH). The updated projections represent a significant increase from previous forecasts.
In its analysis, Citigroup attributed the revised outlook to several key factors. The bank’s analysts pointed to a “resumption of ETF inflows” as a primary driver. Spot bitcoin ETFs, which hold the digital asset directly, were approved by U.S. regulators in January and have seen varying levels of investor demand throughout the year.
The report also noted what it described as “stronger crypto activity” and a “supportive macroeconomic backdrop” as contributing elements to its updated assessment. The bank did not provide further specifics in the publicly released details of the note on what constituted the supportive economic conditions.
The forecasts from Citigroup are part of a series of analyses on digital assets provided by major financial institutions to their clients. These reports are used by investors to gauge institutional sentiment on the cryptocurrency market. The price targets represent the bank’s projections based on its evaluation of current and anticipated market conditions.
