Citigroup "Bitcoin, 12-month target price raised to $113,000"

▲ Bitcoin (BTC)/ChatGPT generated image

Global investment bank Citigroup (C) has significantly raised its 12-month target price for Bitcoin (BTC) from the previous $82,000 to $113,000. This upward revision comes despite the recent setback of the US crypto market structure bill in the US Senate, with the bank diagnosing that swift pro-crypto policies from regulatory authorities and an influx of funds into exchange-traded funds (ETFs) are strongly driving the market rebound.

Benzinga reported on October 1st, citing a report from Citi analysts, that Bitcoin's 12-month target price has been raised to $113,000, which represents an additional upside potential of approximately 35% from the current price. Citi also raised the 12-month target price for Ethereum (ETH) from the previous $2,240 to $3,028. The analysis suggests that as advisory firms and brokerage firms gradually increase their allocation to virtual assets, approximately $5 billion in funds will steadily flow into Bitcoin spot ETFs over the next year.

Regarding the US crypto market structure bill that was rejected in the Senate, positive reassessments are also emerging from Wall Street. Citi evaluated that a series of rule announcements released by the Securities and Exchange Commission immediately after the bill's rejection mitigated the impact and acted as a temporary but significant positive catalyst for the market. In particular, it explained that direct guidance from regulatory authorities is becoming a practical alternative to long-term regulation through legislation during an election cycle. The introduction of the US Treasury's bond buyback program was also cited as a key catalyst that revived liquidity momentum across the virtual asset market.

Matt Hougan, Bitwise Chief Investment Officer, also presented an analysis that the failure of this bill brought tangible benefits to the virtual asset industry. Hougan pointed out that instead of sacrificing long-term legal certainty, faster and stronger pro-crypto rules were secured from regulatory bodies. US Bitcoin spot ETFs, which experienced a net outflow of $5.8 billion by July 13th, have recovered an annual net inflow of $800 million by the end of September, demonstrating a strong trend reversal.

The possibility of policy retreat due to a future change in administration is still mentioned as a potential risk factor. However, Wall Street experts anticipate that the attempt for Bitcoin to settle at $100,000 will gradually become more visible, driven by the combination of institution-led structural capital inflows and improved macro liquidity.

Bitcoin, which turned the negative news of the bill's failure into the positive news of regulatory flexibility, is now surging, leveraging Wall Street's strong upward revision of its target price. Market attention is focused on whether Bitcoin can truly initiate a major bull run towards $113,000 amidst continuous ETF net inflows from institutional investors and an environment of easing liquidity.

[Article Key Summary]

-Citigroup (C) raised Bitcoin's 12-month target price from $82,000 to $113,000 and forecasts $5 billion in ETF inflows in the future.

-Despite the rejection of the US crypto market structure bill, swift pro-crypto rule announcements by regulatory authorities and Treasury buybacks acted as positive catalysts for the market.

-Bitwise analyzed that rapid regulatory benefits were secured instead of long-term certainty, and ETF net inflows have solidified, overcoming the outflow trend in July.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*