Citi predicts: Bitcoin can peak this year until 199,000 dollars

Altcoins currently steal the show, with Ethereum (ETH) that climbs towards his peak of December. Nevertheless, Citi again draws attention to Bitcoin (BTC): the American large bank recently greatly increased its target price, with a strikingly optimistic prediction for the end of 2025.

ETFs as a large catalyst

Citi has raised its price forecast for Bitcoin to $ 135,000 by the end of 2025. Compared to the current rate of $ 116,700, this means an increase of 11.4 percent. The bank bases its optimism on three factors: user growth, macro-economic influences and a strong inflow into Bitcoin Spot Exchange-Traded Funds (ETFs).

In the basic scenario, Citi predicts a growth in the number of users by 20 percent. That alone would be sufficient for a course of around $ 75,000, the analysts say. In addition, Citi counts on an additional $ 63,000 thanks to an expected inflow of 15 billion dollars in US spot ETFs. Citi estimates that these stock market products are now responsible for more than 40 percent of Bitcoin’s recent price movements.

Since the approval of the first American spot ETFs in early 2024, institutional capital flows into the cryptomarkt at a rapid pace. The funds broke record after record. For example, the Ishares Bitcoin Trust of asset manager BlackRock is the most successful ETF of all time. The fund reached a capital of 10 billion dollars in just 33 days, unprecedentedly fast. The previous record was in the name of the JPEQ ETF of JPMorgan, who at the time took 444 days to achieve the same milestone.

More liquidity and lower interest rates

We also see that the macro-economic situation is becoming increasingly favorable for risky investments. The chance is increasing that we will see interest rate letings from the Federal Reserve (FED) in the coming months. For example, the Futuresmarkt estimates a 62.1 percent chance that we will see at least a reduction in September towards an interest rate of 4 to 4.25 percent.

The M2 money quantity has also risen recently. This means that more money is available in the economy. And if there is more money in circulation, more capital will look for returns, for example in shares, real estate or bitcoin.