Wall Street banking behemoth Citigroup has bumped up its Bitcoin target to $113,000 over the next 12 months.
The bank previously expected the leading cryptocurrency to settle around $82,000.
Given that Bitcoin is currently trading around $84,000, reaching Citi’s target would require a 35% price increase.
Citi has also raised its 12-month Ether target to $3,028 from $2,240, according to Reuters.
A bullish revision
Robust cryptocurrency market activity, more benign macroeconomic conditions, as well as strong ETF inflows are believed to be the main reasons behind the revisions.
In July, as reported by U.Today, the banking titan slashed its Bitcoin target from $112,000 to just $82,000. This was due to ETF flows turning negative. Citi had also reduced its assumption for net ETF inflows over the following 12 months from $10 billion to zero.
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Now, Citi expects approximately $5 billion of inflows over the coming 12 months. Financial advisors and brokerages are warming up to the leading cryptocurrency once again.
The flows are expected to resume at a slow but steady pace by Citigroup.
Regulatory setback
Bitcoin has rallied roughly 40% over the past three months. At the same time, Ether has surged approximately 68%, according to Citi.
However, the U.S. Senate failed to advance the much-talked-about Clarity Act last week.
Citi acknowledged that the failure made the odds of a comprehensive cryptocurrency-focused regulatory framework being established in the US much smaller.
With that being said, the fallout stemming from the Clarity passage has been offset by regulatory announcements from the Securities and Exchange Commission (SEC).
Bitcoin has remained above the key $82,000 level despite the failure of the bill, which has been occupying crypto-related headlines for months.
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