Wall Street bank %Citigroup (NYSE: $C) has issued a bullish new forecast for %Bitcoin (CRYPTO: $BTC).
Analysts at Citigroup forecast that Bitcoin will hit $135,000 U.S. by year’s end but could rise to $199,000 U.S. in the most bullish scenario.
Citigroup sees Bitcoin’s price being pushed higher in coming months by rising exchange-traded fund (ETF) inflows.
In its most bearish outlook, Citigroup says that BTC could fall as low as $64,000 U.S., its previous low, should macroeconomic conditions in the U.S. deteriorate.
The crypto analysts at Citigroup note that ETF demand now accounts for over 40% of Bitcoin’s price variation, making it a key input alongside macroeconomic indicators.
The bank adds in a note to clients that their forecast is skewed to the upside as ETF inflows continue to accelerate.
Citigroup’s forecast assumes $15 billion U.S. in additional ETF inflows this year, which will add around $63,000 U.S. to the largest crypto by market capitalization.
The optimistic projections for BTC come as its price continues to decline and has fallen to $116,000 U.S. as investors rotate into %Ethereum (CRYPTO: $ETH).
At its current price of $3,700 U.S., Ethereum has risen more than 50% in the last month and is now at its highest level of the year.
Analysts are forecasting that ETH could be trading between $8,000 U.S. and $10,000 U.S. by year’s end.
The price of BTC has been slumping in recent weeks as Ethereum continues to run higher. Bitcoin is currently up 24% on the year and hit an all-time high of $123,000 U.S. earlier in July.
