Citigroup says Bitcoin’s sharp selloff last week underscored its growing correlation with equities but hasn’t changed the bank’s long-term outlook.
In a note to investors, Citi analysts attributed the flash crash and $20 billion in liquidations to escalating U.S.–China trade tensions, which triggered a global risk-off move across futures and crypto markets.
Despite the turbulence, Citi emphasized that ETF inflows remain resilient, driven largely by newer, less leveraged investors. The bank maintained its 12-month Bitcoin target of $181,000 and Ethereum target of $5,400, with year-end forecasts of $133,000 and $4,500, respectively.
Citi’s base case continues to rely on steady institutional inflows and broader adoption through spot ETFs, while its bearish scenario centers on further equity market weakness. Bitcoin was last seen trading near $111,700, having recovered part of its losses since the Friday crash.
Other banks are also issuing bold forecasts: Standard Chartered predicts Bitcoin could hit $200,000 by year-end, having guided a Q3 target of $135,000. Meanwhile, forecasts from Bitwise place Bitcoin’s “fair value” as high as $230,000, noting macro risks like U.S. debt and fiscal leverage.