Oct 1 (Reuters) - Citigroup raised its 12-month forecasts for bitcoin and ether, citing stronger crypto activity, a supportive macroeconomic backdrop and a resumption of ETF inflows.
The brokerage increased its target for bitcoin to $113,000 from $82,000 and for ether to $3,028 from $2,240.
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Citi said in a note dated Wednesday that it expects crypto inflows to resume at a slower but steadier pace as advisers and brokerages gradually increase allocations to bitcoin
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The brokerage also forecast $5 billion of inflows over the next 12 months
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The US Senate last week failed to advance The Clarity Act, aimed at creating a regulatory framework for digital assets, in a setback for the broader industry
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"The Clarity Act's failure narrowed the path to a market-structure bill, yet spurred Securities and Exchange Commission (SEC) rule announcements that dampened negative sentiment," Citi said
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Bitcoin and ether have rallied nearly 40% and 68%, respectively, in the past 3 months, narrowing their year-to-date losses to about 4% and 9%
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After months of lagging broader risk assets, bitcoin has risen 40% since its July lows as a soft dollar, following the US Treasury's recent move to buy back longer-dated bonds, revived momentum across crypto markets
Reporting by Kanishka Ajmera in Bengaluru; Editing by Sherry Jacob-Phillips
Source: Reuters