In a recent forecast, Citigroup outlined three scenarios for Bitcoin's price by the end of 2025, linked to institutional inflows into spot Bitcoin ETFs.
Forecasting Scenarios for Bitcoin Price
In the base case, a price of $135,000 is projected with moderate inflows of around $15 billion. If institutional buying gains momentum, the bullish scenario suggests a price just under $200,000, driven by increased ETF demand.
Impact of ETFs on Bitcoin Price
According to Citigroup, over 40% of Bitcoin's price movement this year has been tied to ETF-related activity, outpacing older models like stock-to-flow or network usage.
Conclusion on Bitcoin's Prospects
Citigroup emphasizes that price volatility will largely reflect ETF buying and selling pressure instead of mining difficulty or wallet addresses.
Thus, Bitcoin's future may be heavily influenced by the actions of Wall Street investors, highlighting the importance of institutional inflows in its development.
