Citi updates BTC, ETH forecasts. Here are the new 2027 targets

Investing.com -- Citi set 12-month price targets of $181,000 for Bitcoin and $5,400 for Ether, and now expects modest upside into year-end, with forecasts of $132,000 and $4,500.

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Analyst Alex Saunders said in a note that further gains next year should come from investor demand, with both tokens already trading above statistical measures based on user activity.

Citi expects the positive flow backdrop to continue as institutional investors and financial advisers increase their crypto allocations, helped by a favorable regulatory environment, particularly in the U.S.

"The macro backdrop sees offsetting factors, as positive expected 12M equity returns are offset by forecasts of a stronger dollar and, in the case of Bitcoin, a weaker gold price," the bank wrote.

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Citi favors Bitcoin over Ether, citing its larger size, longer history and clearer "digital-gold" narrative, which should attract a bigger share of incremental flows.

Bitcoin currently trades above Citi's adoption model estimate of $83,000, with a range of $70,000 to $95,000, driven by ETF flows and regulation. The bear case assumes a recession and weaker equities, while the bull case assumes even stronger flows.