Despite the recent downward trend of the largest cryptocurrency, Citigroup expects Bitcoin to surpass $143,000 within a year under a bullish scenario for 2026.
Citigroup has released an optimistic forecast for Bitcoin and Ethereum prices over the next twelve months, citing easing regulatory pressures and increasing institutional adoption as key drivers.
In a recent research note, the Wall Street firm indicated that improved policy clarity could encourage greater institutional engagement and renewed capital flows into digital assets.
Bitcoin and Ethereum price predictions
Citigroup has set a target price of $143,000 for Bitcoin over the next twelve months, reflecting a notably positive outlook on the world's largest cryptocurrency. Today, Bitcoin is trading near $88,000, suggesting a potential upside of approximately 62% based on the bank's estimates.
Ethereum also received positive forecasts, with Citi setting a price target of $4,304. Given its current price of around $2,958, this forecast suggests potential gains of approximately 46%.
Taken together, these projections reflect Citi's view that the cryptocurrency market in general is still poised for recovery after the recent declines.
Regulatory momentum supports expectations
According to Citi, regulatory developments will play a crucial role in shaping future market behavior.
The company highlighted the shift by financial authorities toward frameworks specific to digital assets. Simultaneously, numerous enforcement actions and lawsuits against major cryptocurrency platforms have been withdrawn.
Citi indicated that these changes could reduce uncertainty, supporting wider adoption and stronger investment flows in the sector.
Impact of fluctuations
Despite improvements in regulatory indicators, recent market volatility continues to negatively affect investor sentiment.
Bitcoin's price fell to its lowest level in several months during November, as investors reduced their holdings of high-risk assets. Concerns about the high valuations of technology company stocks contributed to this decline in part.
Market sentiment deteriorated further in December after Strategy&, formerly known as MicroStrategy, lowered its 2025 earnings forecast. The firm cited Bitcoin's continued weakness as a contributing factor.
Given Strategist's position as the largest Bitcoin holder, its revised forecasts have garnered significant attention from investors.
Bullish and bearish scenarios
Despite recent fluctuations, Citigroup indicated that current prices appear more in line with actual user activity after adjusting ratings following a decline from their October highs.
In a bullish scenario, the company expects Bitcoin to reach $189,000 and Ethereum to reach $5,132. In a bearish scenario, Citigroup expects Bitcoin to fall to $78,000 and Ethereum to drop to $1,270.
