Wall Street Bank stated that its forecast for Bitcoin is based on additional inflows into crypto ETFs and an ongoing rally in traditional stock markets.
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What you need to know:
● Citigroup's base case for Bitcoin (BTC) anticipates a rise to $143,000 within 12 months.
● Analysts highlight a support level at $70,000, noting the potential for sharp growth amid a resurgence in demand for ETFs and positive market forecasts.
● The bear scenario suggests a drop in Bitcoin to $78,500 amid a global recession, while the bullish forecast predicts a rise to $189,000 due to increasing demand from investors.
Against the backdrop of recent bearish price movements, the headline in Citigroup's 12-month forecast for Bitcoin.
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BTC
$87,209.77
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at a size of $143,000 — which implies approximately 62% growth from the current $88,000 — will cause some surprise.
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“We predict growth in the adoption of digital assets, driven by the potential passage of digital asset legislation in the U.S. in the second quarter, with Bitcoin likely fluctuating at the $80,000–$90,000 range during the new year considering user activity metrics,”
— stated in a joint report by Citi analysts Alex Saunders, Dirk Willer, and Vin Vo.
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They recommended keeping an eye on the $70,000 level as key support, noting that this is approximately the price of Bitcoin shortly before Donald Trump's victory in the 2024 elections.
Their base forecast for 12 months is a sharp rise to $143,000, driven, they say, by a resurgence in demand for ETFs and positive stock market forecasts.
Regulatory catalysts — particularly the passage and signing of the Clarity Act (already approved by the House) — should stimulate further adoption and inflow of funds, they added.
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However, there is also a bearish scenario, and the group assesses its target at a modest $78,500, which is more than 10% lower than current values. They believe that a global recession will be the catalyst.
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The optimistic forecast is $189,000, which more than doubles current metrics, and this will be linked to rising demand from end investors, they reported.
