Amid Recent Downward Price Trend, Headline on Citigroup’s 12-Month Outlook for Bitcoin of $143,000 – an increase of about 62% from the current $88,000 – will raise eyebrows.
“We expect increased adoption of digital assets, driven by potential U.S. digital asset legislation in the second quarter, with user activity value likely between $80,000 and $90,000 for bitcoin in the new year,” Citi analysts Alex Saunders, Dirk Willer and Vinh Vo said in their joint report.
They said to keep an eye on the $70,000 level as key support, noting that this was roughly the price of Bitcoin just before Donald Trump’s 2024 election victory.
Their base case scenario in 12 months forecasts a sharp rise to $143,000, driven, they say, by revived demand for ETFs and positive stock market forecasts. Regulatory catalysts – particularly the passage and signing of the Clarity Act (already passed by the House) – should boost adoption and fund flows, they added.
But there’s also a downside scenario, and the group sets that target at a modest $78,500, a decline of more than 10% from current levels. They believe a global recession would be the catalyst.
The bullish scenario would be as high as $189,000, more than double current levels, and this would be driven by increased demand from end investors, they said.
