The Wall Street brokerage’s target for bitcoin implies a roughly 62% upside from its trading level of $88,085.42, as of 1000 GMT. For ether, the target implies a nearly 46% upside from its level of $2,953.65.
Cryptocurrencies have had a broad boost this year, following U.S. President Donald Trump’s pledge to support digital assets. It has led to the dismissal of a spate of lawsuits against prominent crypto platforms and a shift by financial regulators to create specialized rules to accommodate digital assets.“We anticipate regulatory catalysts will drive further adoption and flows,” Citi said in a note on Thursday.However, bitcoin, the world’s largest cryptocurrency dropped to multi-month lows in November as investors’ appetite for risk assets waned spurred by worries over lofty tech valuations.
Bitcoin shed more than $18,000 in November, its largest dollar loss since May 2021, as a record amount of money rushed out of the market when a number of cryptocurrencies collapsed.
The bearish sentiment was further exacerbated in December when Strategy – the largest corporate holder of bitcoin – cut its earnings forecast for 2025, citing the weak run in bitcoin.”Token prices are closer to statistical measures of value based on user activity following the price reversal from October’s highs,” Citi added.
In a bull case scenario, the brokerage sees bitcoin hitting $189,000 and ether at $5,132.
Citi expects bitcoin and ether declining to $78,000 and $1,270, respectively, in a bear case environment.
