Citigroup Lifts Bitcoin Target to $113K, Ether to $3,028

Citigroup (NYSE: $C) raised its 12-month price forecasts for Bitcoin (CRYPTO: $BTC) and Ethereum (CRYPTO: $ETH) on Wednesday, pointing to stronger crypto market activity, a more supportive macroeconomic backdrop and a resumption of ETF inflows.

The bank lifted its bitcoin target to $113,000 from $82,000 and its ether target to $3,028 from $2,240, according to a client note. Citi also forecast $5 billion in crypto inflows over the next 12 months, expecting the pace to stay slower and steadier as financial advisers and brokerages gradually raise their bitcoin allocations rather than moving in a single rush.

The revision follows a sharp run for both assets. Bitcoin has climbed nearly 40% and ether about 68% over the past three months, narrowing their year-to-date losses to roughly 4% and 9%, respectively. Citi tied bitcoin's rebound from its July lows partly to a weaker dollar, which gained support after the U.S. Treasury's recent move to buy back longer-dated bonds.

Citi also flagged a setback for the industry alongside the upgraded outlook. The U.S. Senate failed last week to advance the Clarity Act, legislation aimed at creating a regulatory framework for digital assets. The bank wrote that the bill's failure narrowed the path to a broader market-structure law, but added that the setback spurred SEC rule announcements that eased negative sentiment.

Shares of Citigroup (NYSE: $C) are currently trading at $129.48.