Citi has raised its 12-month price targets for both bitcoin and Strategy, reversing the caution it showed in July. The bank points to stronger crypto activity, a friendlier macro backdrop, and returning ETF inflows as the reasons behind the shift.
Citi now expects bitcoin to climb past $113,000 over the next year, almost doubling its price target for Strategy, the largest corporate holder of the cryptocurrency. The bank's new outlook follows a market recovery that began in mid-August.
BTC target jumps to $113,400
Just months ago, Citi slashed its bitcoin price target for the next year to under $82,000. That call came in July, when market sentiment had deteriorated and bitcoin had plummeted to its lowest level since late 2024, under $58,000.
Bitcoin then rebounded, climbing roughly 50% to around $86,000. As a result, Citi lifted its 12-month forecast by approximately 40% to $113,400, reversing much of the caution it had shown in July.
The bank's analysts cited stronger cryptocurrency activity, a more supportive macroeconomic environment, and the return of ETF inflows as the key reasons behind the new target. Citi also expects around $5 billion in crypto inflows over the next year, with financial advisers and brokerages gradually increasing their bitcoin allocations.
It also acknowledged the failure of the CLARITY Act in the Senate but argued that subsequent announcements from the SEC and the CFTC helped soften the hit to sentiment.
Strategy's valuation sees an even bigger swing
Citi's shift in outlook has had an even larger effect on its valuation of Strategy. During its July call, the bank had set an MSTR price target of $136, when the company's main shares struggled below $100 and its other stock, STRC, had plunged far below its par level.
Now, however, Strategy trades at $160, a gain of more than 60% since the summer lows.
Source: CryptoPotato
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