Citi raises 12-month Bitcoin price target to $113,400 and MicroStrategy to $240, citing stronger market conditions and $5B in expected crypto inflows.
Macro & Markets ·
Citi has lifted its 12-month Bitcoin price target to $113,400, up roughly 40 percent from a prior forecast below $82,000 issued in July. The shift reflects stronger cryptocurrency market activity, a more supportive macroeconomic backdrop, and the resumption of ETF inflows. The bank anticipates approximately $5 billion in crypto inflows over the coming year as financial advisers and brokerages gradually increase Bitcoin allocations. Citi also noted that regulatory announcements from the SEC and CFTC helped offset sentiment damage from the Senate's failure to pass the CLARITY Act.
The bank's revised outlook has pronounced implications for MicroStrategy, which it now values at $240 per share compared to a $136 target from July. Roughly 34 percent of the projected upside stems from further Bitcoin appreciation, while an additional 16 percent is attributed to expansion of the company's market-to-net-asset-value premium, underscoring the direct correlation between the stock's valuation and Bitcoin's price performance.
Bitcoin has recovered roughly 50 percent since July lows near $58,000 and currently trades around $86,000, providing context for Citi's recalibration. The bank maintains a "buy" rating on MicroStrategy and acknowledges that valuations remain highly sensitive to shifts in market conditions.