Citi has updated its outlook on digital assets, setting new year-end forecasts for bitcoin and ether (ethereum) due to continued investments initiated by institutional investors and financial advisors.
The US investment bank sees bitcoin reaching $132,000 and $4,500 for Ether, with 12-month price targets raised to $181,000 and $5,400, respectively.
BTC was up 2.5% to $119,713 on Thursday, while ETH was up 2.3% at just under $4,407.
Citi said continued upside is expected next year due to anticipated investor demand, "as both tokens are trading above statistical user-activity-based measures".
The macro backdrop sees "offsetting factors", the bank added, with positive expected equity returns over the coming 12 months offset by forecasts of a stronger US dollar and, in the case of bitcoin, a weaker gold price.
"We are more positive on bitcoin compared to ether, as it captures an outsized portion of incremental flows into crypto markets."
The bank cautioned that there is "inherent uncertainty reflected in the bull and bear cases based on transparent assumptions around investor demand and user activity where the extent of value accrual to ETH adds another layer of uncertainty".