|
Getting your Trinity Audio player ready...
|
- Citigroup sets Bitcoin bull case at $231K, ETH at $7,300.
- Institutional adoption and ETF inflows support BTC momentum.
- Macro trends like potential Fed rate cuts may boost crypto markets.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Banking giant Citigroup has revised its Bitcoin forecast, projecting a potential rally to $231,000 over the next 12 months. This represents the firm’s bull case for the flagship cryptocurrency, with base and bear scenarios pegged at $181,000 and $82,000, respectively. By year-end, Citigroup expects Bitcoin could reach $132,000, marking a new all-time high (ATH) if market conditions remain favorable.
Citigroup highlighted continued investor demand as a key driver, noting that Bitcoin is trading above statistical measures based on user activity. Increased adoption by institutional investors and financial advisors is expected to further fuel inflows, supporting the crypto’s upward trajectory.
Ethereum Outlook and Market Comparisons
Ethereum, the largest altcoin by market cap, is projected by Citigroup to hit $7,300 in the next 12 months in a bull scenario, while bear cases suggest a drop to $2,000. The bank expects ETH to reach around $4,500 by the end of the year. Despite this potential, Citigroup expressed more confidence in Bitcoin, citing uncertainty around investor demand and network activity for Ethereum.
The firm’s latest report reflects that while ETH remains significant in crypto markets, incremental inflows largely favor Bitcoin, making it the primary beneficiary of institutional interest.
Record ETF Inflows and Macro Drivers
Citigroup’s bullish stance aligns with a resurgence in BTC ETFs, which recorded over $1.6 billion in net inflows over three days. On October 1 alone, ETFs saw $675.81 million in daily inflows—the largest since September 10. This coincides with a Bitcoin rally, lifting the price above $119,000 and up 4% for the month so far.
Macro factors may also be supporting the momentum. The latest ADP jobs report indicated a weakening labor market, raising the odds of a Federal Reserve rate cut in October to 99%. Historically, October is Bitcoin’s second-best-performing month, averaging gains of over 20%, suggesting seasonal trends may bolster the rally.
Citigroup’s predictions highlight growing optimism in the crypto market, with Bitcoin poised for potential record highs while Ethereum trails slightly in investor preference. Strong institutional interest, positive ETF flows, and favorable macro signals all point to a potentially bullish finish for Bitcoin and broader crypto markets in the year ahead.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Citigroup Predicts Stablecoin Market to Reach $3.7 Trillion by 2030—With Risks in Play
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
