Investors are increasingly favoring ether - a currency that can generate yields, rather than bitcoin, the largest cryptocurrency in the world which relies solely on price appreciation.
Citi's target for bitcoin is 133,000 USD, implying an increase of about 12% compared to the trading price of 118,747.48 USD as of 05:30 GMT on October 2. For ether, the target is 4,500 USD, corresponding to an increase of nearly 3% from the level of 4,375 USD.
Citi forecasts that the upward trend will continue next year, with a 12-month target of 5,440 USD for ether and 181,000 USD for bitcoin.
The year-end forecast for bitcoin has been slightly lowered, as Citi points out macro factors offsetting such as a stronger USD and weaker gold prices.
While bitcoin continues to trade higher than valuation models based on acceptance levels, the brokerage firm stated that its “digital gold” narrative remains intact and has the potential to attract a larger share of additional cash flows.
Citi's analysts have raised their year-end forecast for ether, noting the strong price increase of this token over the summer, as institutional investors and financial advisors ramped up their buying activity in cryptocurrencies.
The firm expects ether to finish 2025 slightly higher, supported by strong capital flows from ETF funds and digital asset treasury.
Citi's base case scenario assumes a strong year-end capital flow of 7.5 billion USD into bitcoin, with an optimistic scenario based on a stronger stock market and higher demand. For ether, growth momentum comes from broader acceptance and the ability to generate yields through staking and decentralized finance (DeFi)$BTC
