Citi Analysts Unveil Bitcoin Bull Case Price Target, Say BTC Returns Since 2024 Can Largely Be Explained by One Catalyst Alone: Report
Citi analysts have introduced a new Bitcoin price forecast model, emphasizing that BTC's value is largely driven by demand. They predict a "bull case" price target of $199,340, a "base case" of $135,133, and a "bear case" of $63,675 by year-end. The analysts highlight that net weekly flows into Bitcoin ETFs significantly influence BTC returns, marking a shift in how digital assets are valued within the broader macroeconomic context.
Analysts at banking giant Citi are laying out price targets on Bitcoin (BTC) based on a surprisingly simple forecast model.
In a new report seen by the Financial Times, Citigroup analysts Alex Saunders and Nathaniel Rupert offer a new way of valuing digital assets, ostensibly suggesting that the price of Bitcoin is influenced simply by how many people want to own it.
While Citi’s previous Bitcoin price models incorporated various data inputs like mining electricity costs, adoption rates and more, the analysts have updated their forecast to account for the reality that crypto assets are very much a part of the traditional macroeconomic picture, rather than an isolated subset without relevance to the average investor’s portfolio.
Citi now has a “bull case” price target of $199,340 for BTC at the end of this year, a “base case” for $135,133, and a “bear” case for $63,675.
As of late, the analysts say that the price of BTC is primarily driven by one factor.
The Citi analysts say that the net weekly flows into Bitcoin-based exchange-traded funds (ETFs) have had a “very strong contemporaneous relationship” with the returns on BTC.
