(Oct 1): 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 US$113,000 (RM461,718) from US$82,000 and for ether to US$3,028 from US$2,240.

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.

The brokerage also forecast US$5 billion of inflows over the next 12 months.

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.

"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.

Bitcoin and ether have rallied nearly 40% and 68%, respectively, in the past three months, narrowing their year-to-date losses to about 4% and 9%.

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.

Uploaded by Magessan Varatharaja