According to a recent analysis by Citi, the price of Bitcoin may ascend to $143,000 in the forthcoming year, driven by ongoing adoption related to exchange-traded funds (ETFs) and a more favorable regulatory environment in the United States, which is expected to attract new capital into the market.
The analysts at the Wall Street investment firm have established a base-case target of $143,000 for Bitcoin over the next twelve months. Their report also delineates a bullish scenario with a potential price exceeding $189,000, while a bearish perspective suggests a possible decline to approximately $78,500 under deteriorating macroeconomic conditions, as reported by MarketWatch.
As of Friday, Bitcoin was trading around $88,000, reflecting a roughly 30% decrease from its peak in late October. This price correction followed a significant wave of selling after earlier gains this year; however, Citi noted a recent moderation in outflows from spot Bitcoin ETFs.
The bank’s bearish outlook incorporates the possibility of recessionary pressures and diminished appetite for risk assets. In November, the price of Bitcoin fell to its lowest level in several months amid growing concerns surrounding elevated technology valuations and wider macroeconomic risks. The cryptocurrency experienced a decline of more than $18,000 that month, representing its most significant dollar decrease since May 2021 amidst substantial investor withdrawals.
Increasing Institutional Adoption of Bitcoin
In a notable shift towards accepting digital assets, the Bank of America recently advised its wealth management clients to allocate 1% to 4% of their portfolios to cryptocurrencies. This recommendation marks a significant change in the bank’s approach to Bitcoin exposure.
This initiative empowers over 15,000 advisers across Merrill, Bank of America Private Bank, and Merrill Edge to actively recommend cryptocurrency investments to their clients.
Furthermore, PNC Bank has introduced direct spot Bitcoin trading for eligible Private Bank clients, enabling them to buy, hold, and sell Bitcoin through its digital banking platform without reliance on external exchanges. This service is powered by Coinbase’s Crypto-as-a-Service infrastructure.
Bitcoin Price Analysis
The recent sell-off of Bitcoin highlights a market currently characterized by consolidation, during which positive macroeconomic catalysts struggle to yield sustained price increases.
Following a brief test of the $89,000 mark in response to lower-than-expected U.S. inflation data, Bitcoin retreated back toward the $84,000 range, signaling the continuation of a correction entering its second month. The market has exhibited a repeated pattern: sharp rallies propelled by data releases followed by swift retracements as sellers defend resistance levels situated below $90,000.
Mixed macroeconomic signals complicate the situation. November’s Consumer Price Index (CPI) recorded a decline to 2.7% year-over-year, with core inflation at 2.6%, reinforcing the argument for potential Federal Reserve rate reductions in 2026. However, factors such as rising U.S. unemployment and inconsistent job growth create uncertainty, suggesting that the Fed may proceed with caution. Consequently, market participants appear hesitant to anticipate aggressive easing measures.
A significant hurdle remains the U.S.-listed spot Bitcoin ETFs, which have transitioned from consistent inflows to net redemptions. Such outflows eliminate a stabilizing demand that previously mitigated selling pressures, rendering price breakouts more challenging to maintain even in light of favorable news.
From a technical perspective, Bitcoin’s price movement is limited to a defined range. Resistance is situated just below the $90,000 threshold, while support around $84,000 shows signs of weakening. A decisive breach below these levels could initiate a decline toward the $72,000–$68,000 range, where analysts anticipate stronger demand to emerge.
Extreme fear indicators suggest a potential undervaluation of Bitcoin; however, short-term momentum currently favors sellers.
At the time of this analysis, the price of Bitcoin hovers near the $88,000 mark.
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