Citigroup has issued optimistic 12-month price forecasts for Bitcoin and Ethereum, citing easing regulatory pressures and rising institutional adoption as key catalysts.
In a research note released Thursday, the Wall Street firm noted that improving policy clarity could encourage greater institutional participation and renewed capital inflows into digital assets.
Bitcoin and Ethereum Price Outlook
Citi set a 12-month price target of $143,000 for Bitcoin, signaling a notably bullish view on the world’s largest cryptocurrency. Today, Bitcoin was trading near $87,976, implying upside of roughly 62% based on the bank’s estimates.
Ethereum also received a favorable outlook, with Citi assigning a target price of $4,304. From its current level of about $2,958, that projection suggests potential gains of nearly 46%.
Taken together, the targets reflect Citi’s view that the broader crypto market remains positioned for recovery following recent drawdowns.
Regulatory Momentum Underpins the Forecast
According to Citi, regulatory developments will play a decisive role in shaping market behavior going forward.
The firm highlighted a shift by financial authorities toward frameworks specifically for digital assets. At the same time, several enforcement actions and lawsuits against major crypto platforms have been withdrawn.
Citi said these changes could reduce uncertainty, supporting wider adoption and stronger investment flows across the sector.
Volatility Remains a Key Backdrop
Even with improving regulatory signals, recent market volatility continues to weigh on sentiment.
Bitcoin slid to multi-month lows in November as investors reduced exposure to riskier assets. The pullback was fueled in part by concerns over elevated valuations in technology stocks.
Market sentiment weakened further in December after Strategy, formerly known as MicroStrategy, lowered its 2025 earnings forecast. The company cited Bitcoin’s prolonged weakness as a contributing factor.
Given Strategy’s position as the largest corporate holder of Bitcoin, its revised outlook drew close attention from investors.
Citi Maps Out Bull and Bear Scenarios
Even amid recent turbulence, Citi said current prices appear more closely aligned with underlying user activity after valuations adjusted following the retreat from October highs.
In a bullish scenario, the firm projects Bitcoin at $189,000 and Ethereum at $5,132. Under a bearish outlook, however, Citi projects Bitcoin could fall to $78,000, while Ethereum could decline to $1,270.
Bernstein Sees a Structural Shift in Bitcoin Cycles
Citi’s projections follow a separate analysis from the brokerage firm Bernstein, which argued that Bitcoin has moved beyond its traditional four-year cycle and entered a longer bull market.
The firm noted that despite a 30% correction, ETF outflows accounted for less than 5% of total holdings. This pattern, Bernstein said, suggests investors remain committed despite short-term price swings.
Reflecting this confidence, Bernstein raised its 2026 Bitcoin price target to $150,000. The firm expects the current cycle to peak around $200,000 in 2027. Over the longer term, Bernstein forecasts Bitcoin could approach $1 million by 2033.
Previously, Bernstein anticipated that Bitcoin would reach $150,000 by 2025, indicating a reassessment of the market’s timeline rather than its long-term potential.
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