Citi projects Bitcoin to reach 181K and Ethereum 5,440 in 12 months on the back of high institutional flows
The financial powerhouse Citi has drastically increased its price projections on the cryptocurrencies Bitcoin and Ethereum.
Now the bank estimates that by the end of 2025, Bitcoin may reach $132,000 and in 12 months, it may reach 181,000. Ether is also likely to increase to $4,500 by the end of the year and to $5,440 in the coming year.
These projections are as a result of an upward and better-than-projected inflow of investments and an expansion in institutional participation. A note to clients had described this information, which Investing.com widely reported.
A strong flow of money provided by exchange-traded funds (ETFs) and digital asset treasuries, which is a key motivating factor of these price goals, is highlighted in the report.
The cryptocurrencies are also being embraced by institutional investors and financial advisors, who are getting adjusted to a positive regulatory environment, particularly in the U.S.
This rush is driving Bitcoin and Ethereum prices well beyond the activity-based historical statistical metrics.
Why Bitcoin Outshines Ethereum in Institutional Eyes
Bitcoin is said to be the preferred asset of the bank as it has been leading the market flows and has a strong digital gold story. Citi points out that Bitcoin is a target of incremental investment flows owing to its size, history, and brand strength.
The analysts at the bank note that Bitcoin takes a bigger share of new liquidity injected in crypto markets than Ethereum.
The future of Ethereum is a little more complicated. Its price projection is associated with a greater uncertainty, primarily because of the difficulties in the modeling of user activity and the value that is generated by the Layer-2 scaling solutions.
However, the high inflows may yet trigger significant improvements in Ethereum. Citi calculates the possible gain in spite of such complications.
Regulatory Tailwinds and Institutional Momentum.
The upward trend into crypto assets will most likely continue to flow due to institutional support. The trend is reflected by high ETF turnover and assets, treasury investments in the digital world.
In addition, the changing regulatory environment in the U.S. is making the crypto investments more secure and attractive.
The base case of Citi projects Bitcoin to be at 181, 000 and a bullish case will occur under the condition that the inflows by the investors are higher than anticipated.
On the other hand, a bearish argument attributes the price weakness of Bitcoin to the declining equities.
The future of Ethereum is less predictable and seems to be bullish owing to the progress of Layer-2 networks and inflows.
Source: https://www.livebitcoinnews.com/citi-predicts-bitcoin-ethereum-surge-to-new-heights/