Amid the latest bearish value motion, the headline on Citigroup’s 12-month outlook for bitcoin of $143,000 — or about 62% upside from the present $88,000 — will elevate some eyebrows.
“We forecast increased adoption of digital assets, spurred by potential U.S. digital-asset legislation in the second quarter, with bitcoin likely ranging into the new year around $80,000-$90,000 user-activity values,” Citi analysts Alex Saunders, Dirk Willer and Vinh Vo mentioned of their joint report.
They mentioned to keep watch over the $70,000 stage as key help, noting that was roughly bitcoin’s value simply forward of Donald Trump’s 2024 election victory.
Their base case 12 months out is for a pointy rise to $143,000, pushed, they mentioned, by revived ETF demand and constructive inventory market forecasts. Regulatory catalysts — particularly passage and signing of the Readability Act (already handed within the Home) — ought to drive additional adoption and fund flows, they added.
However there’s additionally a bear case, and the group pegs that focus on at a lowly $78,500, or down greater than 10% from present ranges. They imagine a world recession could be the catalyst.
The bull case could be $189,000, or greater than doubling from present ranges, and that might be due to elevated end-investor demand, they mentioned.
