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Investing.com -- Citi has raised its price targets for Bitcoin and Ethereum, citing stronger-than-expected flows and growing institutional adoption.
In a note to clients, Citi said it now sees Bitcoin ending the year at $132,000 and Ethereum at $4,500, with 12-month targets of $181,000 and $5,440, respectively.
“We are updating our forecasts for Bitcoin and Ether, establishing 12-month price targets and anticipating modest upside into year-end, with further gains expected next year due to investor demand,” analysts wrote.
Citi noted that both tokens are “trading above statistical measures based on activity, supported by strong flows from ETFs and digital asset treasuries.”
The bank expects the positive flow backdrop to continue as “crypto investments are initiated by institutional investors and financial advisors, further aided by a positive regulatory environment, particularly in the U.S.”
Bitcoin is the bank’s preferred asset, with analysts writing: “We are more positive on Bitcoin compared to Ether, as it captures an outsized portion of incremental flows into crypto markets.”
They added that Bitcoin’s size, history, and “clearer ‘digital-gold’ narrative” make it more attractive than Ethereum.
Citi’s base case sees Bitcoin at $181,000 in 12 months, with a bull case dependent on higher-than-expected inflows and a bear case tied to weaker equities. Ethereum’s outlook is more uncertain.
“Ether forecasts are more uncertain due to the complexities of modeling user activity and value accrual from Layer-2 networks,” the note said, though flows could still drive meaningful price appreciation.
The bank also highlighted Bitcoin’s strengthening correlation with gold, underscoring its growing role in investor portfolios.