Citigroup Predicts Slower Yet Steadier Crypto Inflows

The brokerage raised its target for bitcoin from $82,000 to $113,000, and its forecast for ether from $2,240 to $3,028, Reuters reported Thursday (Oct. 1), citing a note from Citi.

That note said the bank anticipates that crypto inflows will resume at a slower but steadier rate as advisers and brokerages gradually up their allocations to bitcoin. Citi is also projecting $5 billion of inflows over the next 12 months.

Reuters noted that this comes on the heels of the U.S. Senate’s failure to advance The Clarity Act, which was designed to establish a digital asset framework.

“The Clarity Act’s failure narrowed the path to a market-structure bill, yet spurred Securities and Exchange Commission rule announcements that dampened negative sentiment,” Citi said.

Both bitcoin and ether—the most popular and second-most popular cryptocurrencies, respectively—have rallied in the last three months, with bitcoin up 40% and ether 68%, the report added.

PYMNTS wrote earlier this week that the fate of The Clarity Act has “left unresolved questions about regulatory jurisdiction and the durability of rules developed without new congressional authorization.