Citi raises bitcoin, ether forecasts amid strong crypto activity
Summary
Citi has updated its forecasts for bitcoin and ether, predicting a resurgence in crypto inflows at a slower but steadier pace, which is expected to yield around $5 billion in investments over the next 12 months. This optimism comes as bitcoin and ether have experienced significant growth, rallying nearly 40% and 68% respectively in the past three months, leading to reduced year-to-date losses. The note emphasized that while the failure of the Clarity Act has limited progress toward a market-structure bill, it has also led to SEC rule announcements that mitigated some negative sentiment in the crypto markets. Additionally, bitcoin's recent rise is attributed to a softer dollar environment stimulated by the US Treasury's bond buyback activities, enhancing momentum across cryptocurrency markets.