Citi’s recent report presents updated forecasts for Bitcoin’s price, highlighting key factors influencing its market prospects.
Updated Citi Forecast
Citi has revised its Bitcoin price model, forecasting a year-end price target of $135,000 in the base case and a bullish scenario pushing it to $199,000. The report also outlines a bear case floor of $64,000 should macroeconomic conditions deteriorate.
Future Scenarios for Bitcoin Market
In the bullish scenario, Citi anticipates significant institutional allocation that may lead to a Bitcoin price of around $199,000. Key elements of this scenario include: * ETF inflows exceeding $25 billion by year-end; * A more favorable macro backdrop, including monetary policy easing; * Enhanced user engagement, especially from developing markets.
Expectations for User Growth and Macroeconomic Conditions
Citi emphasizes the significance of user growth in its long-term valuation framework, noting an average monthly increase of 1.4% in Bitcoin wallets, alongside rising user activity in Latin America and Southeast Asia.
Citi’s report provides a comprehensive outlook on Bitcoin’s future, emphasizing its evolving role in financial markets and the importance of macroeconomic factors.
