Citigroup Predicts Slower Yet Steadier Crypto Inflows
By PYMNTS
AI summary of the source article
Citigroup has increased its 12-month price targets for bitcoin from $82,000 to $113,000 and ether from $2,240 to $3,028, projecting $5 billion in inflows over the coming year. The bank expects crypto inflows to resume at a slower but steadier rate as advisers and brokerages gradually build allocations. This forecast follows the U.S. Senate's failure to advance The Clarity Act, a digital asset market-structure bill. In response to stalled legislation, the Federal Reserve proposed rules implementing the GENIUS Act to address stablecoin reserve assets, capital requirements, and bank custody arrangements, establishing practical regulatory pathways while broader jurisdictional questions remain unresolved.
Why it matters
Advisers and brokerages are expected to gradually increase digital asset allocations, while federal regulatory measures establish practical pathways for stablecoins amid unresolved congressional debates.
Key facts
- Citi raised its 12-month price target for bitcoin to $113,000 and ether to $3,028, forecasting $5 billion in inflows.
- Over the preceding three months, bitcoin rose 40% and ether gained 68%.
- The Federal Reserve proposed rules under the GENIUS Act addressing bank-issued payment stablecoins, reserve assets, and custody arrangements.