Institutional Adoption Drives Crypto Prices Higher
Citigroup also suggests a more moderate estimate of $181,000 for Bitcoin, indicating strong potential growth in the medium term. However, they warn that Bitcoin could drop to $82,000 if regulatory issues, market corrections, or changes in investor attitudes occur.
The banking giant also predicted that Ethereum (ETH) could reach $7,300 in the next year. This rise could occur as a result of improvements with the Ethereum 2.0 upgrade, more decentralized finance (DeFi) users, and better scalability features. In a more likely scenario, Citigroup expects ETH to be priced at $5,400. However, if there are issues with network performance or if the market declines, the price might drop to $2,000.
Notably, the prediction comes amid increased interest in digital assets among institutional investors. According to CoinMarketCap data, Bitcoin is currently trading at $119,171.78, a 1.51% increase within the last 24 hours.
Importantly, the current price would need to push higher above $120,000 to reinforce confidence among investors. This will go a long way in encouraging broader participation and liquidity inflows.
David Bailey Predicts Long Break From Bitcoin Bear Markets
Last month, David Bailey, entrepreneur and Bitcoin adviser to U.S. President Donald Trump, claimed that Bitcoin would not face another bear market for several years. He cited growing institutional participation as a key driver. Bailey also noted for the first time that mainstream players such as banks, insurers, and pension funds are beginning to accumulate Bitcoin at scale.
He argues that institutional adoption through vehicles like exchange-traded funds (ETFs) and corporate treasuries will keep Bitcoin on a strong upward trajectory. Recall that in July, analysts at Standard Chartered also predicted Bitcoin to reach $200,000 by the end of December.
Geoffrey Kendrick, the bank’s global head of digital assets research, also highlighted rising demands from crypto funds as a major factor. Likewise, he cited favorable government policies as a key driver of Bitcoin’s expected growth.
Bitcoin Price Tracks Four-Year Halving Cycle
Meanwhile, in August, onchain analytics platform Glassnode shared that Bitcoin price action may still be tracking its historic four-year halving cycle.
“From a cyclical perspective, BTC price action also echoes prior patterns,” the firm stated. It noted that long-term holders who hold coins for more than 155 days are taking profits at levels comparable to past euphoric stages.
On this premise, the firm claimed that Bitcoin highs could still come in the coming months. Glassnode referenced both the 2018 and 2022 cycles. In this case, peak prices were recorded only two to three months beyond where the market was at the time of the report.
The post Citigroup Predicts Bitcoin Price Could Hit $231,000 in 12 Months appeared first on BitcoinLinux.com.
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Author: coinmaker