TLDR:
- Citi predicts Bitcoin could reach $132K by year-end, with $181K over the next 12 months.
- Ethereum’s year-end forecast rises to $4,500, reflecting ETF inflows and staking adoption.
- Citi sees Bitcoin as “digital gold” attracting more institutional flows despite macro pressures.
- Ether’s upside depends on network adoption and yield opportunities through DeFi and staking.
The crypto market could see further upward momentum after Citi raised its Bitcoin and Ethereum price targets. The Wall Street bank cited growing institutional demand and record ETF inflows as drivers behind the updated forecasts.
Bitcoin and Ethereum are now projected to reach higher price points by the end of the year, reflecting strong investor interest. Citi’s analysis shows a shift in focus toward yield-generating assets like Ethereum.
Analysts suggest investor behavior in coming months will determine whether these forecasts materialize.
Citi Updates Bitcoin and Ethereum Price Forecasts
Citi adjusted Bitcoin’s year-end target to $132,000 while setting a 12-month projection at $181,000. The brokerage emphasized Bitcoin’s role as “digital gold,” noting its large market size and growing inflows.
According to a tweet by Walter Bloomberg (@DeItaone), the bank views Bitcoin as a safe store of value attracting incremental institutional funds. Citi analysts also slightly lowered Bitcoin’s previous forecast due to macroeconomic headwinds, including a stronger U.S. dollar and weaker gold prices.
Despite these factors, the bank believes Bitcoin will maintain investor attention and capture a larger share of capital flows.
For Ethereum, Citi raised its year-end target to $4,500 and set a 12-month forecast of $5,440. Ether’s outlook is influenced by staking, DeFi adoption, and rising ETF participation. Citi noted that institutional investors and financial advisors boosted Ether purchases over the summer.
The brokerage expects continued inflows from digital asset treasuries and ETFs to support price growth. Analysts pointed out that Ethereum’s value depends on network activity, making precise downside predictions more complex than Bitcoin’s.
Institutional Demand and ETF Flows Driving Crypto Prices
Citi’s base case scenario anticipates $7.5 billion flowing into Bitcoin by year-end. A bull case would depend on stronger equity markets and even higher demand. Ether’s upside hinges on adoption trends and yield potential through decentralized finance platforms.
Investors are increasingly favoring Ethereum for its income-generating features, compared to Bitcoin’s sole reliance on price appreciation. Reuters reported that shifting flows show a broader trend of institutions seeking diversified exposure in crypto markets.
The bank also considered downside scenarios, projecting Bitcoin could fall to $83,000 if recessionary pressures worsen. Ethereum’s downside is harder to model, given uncertain network activity.
Citi analysts emphasized that sustained investor demand remains crucial to support both tokens through year-end and into 2026. These projections illustrate a growing confidence among investors in digital assets, despite short-term volatility.
The post Citi Raises Bitcoin to $132K, Ethereum to $4.5K as ETF Flows Heat Up appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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