Bitcoin is back in focus after an outlook from Citigroup, where analysts mapped out a wide price range for the next year that captures both upside momentum and lingering downside risks. The bank’s latest projections point to a base-case target of $143,000 over the next 12 months, anchored in expectations around a growth in ETF participation and clearer regulatory frameworks. Furthermore, Citi outlined an optimistic path that stretches to $189,000, alongside a bearish scenario that projects a downward move to $78,500. Related Reading: Banks Could Favor A Higher XRP Price, Finance Expert Says ETF Adoption And Institutional Demand Citi’s base and bullish scenarios are built around the same core thesis: the growing role of regulated investment vehicles in shaping Bitcoin’s market structure. Crypto analysts are always noting that Spot Bitcoin ETFs have lowered barriers for institutional investors, making it easier for large pools of capital to gain exposure without direct custody concerns. Analysts at Citi are leaning into this school of thought and are projecting bullish price levels for Bitcoin. With the expectations of ETF interest and regulatory clarity in mind, Citi sees Bitcoin trending toward $143,000 under its base case within the next 12 months. Interestingly, the outlook of a bullish scenario from the analysts projected that Bitcoin will be trading somewhere around $189,000 within the next 12 months. These projections are notable considering the current state of Bitcoin’s price action, which is currently struggling near $90,000. They are also contingent on a turnaround in the state of flows surrounding Spot Bitcoin ETFs. LATEST: ???? Citi analysts put Bitcoin’s 12-month price base case at $143,000, driven by anticipated ETF interest and regulatory clarity, with a bullish scenario of $189,000 and a bearish one of $78,500. pic.twitter.com/jAukEDkXQe — CoinMarketCap (@CoinMarketCap) December 20, 2025 Despite its constructive outlook, Citi also flagged downside risks that could derail bullish momentum. A bearish framework by Citi analysts projects the Bitcoin price sliding to $78,500 within the next 12 months. Fundstrat’s Internal View Contrasts With Citi’s Optimism Citi’s bullish projections are in contrast to a more cautious internal outlook recently reported by Fundstrat Global Advisors. Internal discussions within the firm are warning of a possible drawdown of the Bitcoin price toward the $60,000 to $65,000 range. According to an internal note circulated to clients, Fundstrat’s head of digital asset strategy, Sean Farrell, cautioned that a further correction may unfold during the first half of 2026 as macroeconomic pressures and tightening financial conditions weigh on risk assets. According to @_FORAB, Tom Lee’s fund, Fundstrat, stated in its latest 2026 cryptocurrency strategy advice to internal clients that a significant correction is expected in the first half of the year, completely contradicting Tom Lee’s public statements. The internal report sets… pic.twitter.com/HbRoNzr85z — Wu Blockchain (@WuBlockchain) December 20, 2025 The report outlined downside targets that place Bitcoin in the $60,000 to $65,000 range, a level that would represent a 30% decrease from its current price range. The same internal framework also projected Ethereum retreating downwards to $1,800 to $2,000, alongside Solana falling into a $50 to $75 range. Related Reading: Bitcoin Feels The Weight Of Quantum Risk Concerns, Industry Leaders Warn This goes against the public stance of Fundstrat co-founder Tom Lee, who has publicly maintained a bullish stance on the long-term trajectory and new all-time highs for Ethereum and Bitcoin. Featured image from Unsplash, chart from TradingView
Circle remains the bank's top pick in the sector, with Bullish and Coinbase following.
The event marked a milestone that broadens the platform’s reach across new and traditional assets, the analysts said.
The executive chairman of Strategy pitched BTC-backed banking and yield products as a $200 trillion opportunity at the Bitcoin MENA conference.
Crypto is stuck in a second-year post-halving slump, with ETF outflows and jittery long-term holders pushing bitcoin toward the bank’s bear-case outlook.
The Wall Street bank said fading crypto momentum could be flagging trouble for equities, though improving liquidity may revive the year-end rally.
The Wall Street bank blamed recent market underperformance on October liquidations, cooling demand from spot ETFs, and weakening technicals.
A prominent crypto commentator known as Remi Relief has expanded on theories linking Ripple, SWIFT, and the global banking system to the long-term valuation of XRP. His post on the social media platform X came in response to a discussion initiated by well-known analyst Paul Barron, who questioned whether Ripple’s strategy has always been to bridge the increasingly fragmented world of bank-issued stablecoins. The idea brings attention to XRP’s utility in facilitating liquidity between institutional networks, with Remi Relief noting that this could push the XRP price to $1,000. The Ripple/SWIFT Dual-System Theories Remi Relief proposed that the global payment structure could split into two interconnected systems where both ultimately rely on XRP for settlement and support the cryptocurrency’s price at $1,000. The first theory proposes a revamped version of SWIFT that would retain much of its existing framework but incorporate blockchain-based assets such as XRP, XDC, HBAR, and Chainlink to achieve faster transaction speeds and improved efficiency. Despite these upgrades, it would still face skepticism from some financial institutions due to it being weaponized in the past. Related Reading: Ripple CTO Stacks XRP Ledger Against Other Blockchains, What’s The Catch? The second theory is the setup of a new Ripple-based network built in collaboration with Thunes, which would function as a more trusted and independent channel for cross-border payments. This system would be much quicker, much cheaper and more trusted by countries. In Remi’s view, both models would coexist for a time, giving banks and governments the freedom to choose based on transaction scale, cost, and reliability. However, he believes that the Ripple-Thunes system will later gain dominance and overtake SWIFT as more and more banks use that system. Regardless of which of the two theories prevails, Remi Relief pointed out that both have the potential to lead to a $1,000 XRP more quickly than most people think. Paul Barron’s Perspective On Institutional Stablecoins Paul Barron’s initial post that prompted Remi Relief’s response is based on the growing race among major banks to issue their own stablecoins. He pointed out that while SWIFT continues to promote neutral rails, banks like JPMorgan, Bank of America, Citi, and Wells Fargo are developing US-based consortium stablecoins. Similarly, European institutions such as ING and Deutsche Bank plan to launch euro-denominated versions by 2026. Related Reading: High Liquidity At This Level Could Send The XRP Price Surging Soon Barron warned that this trend toward proprietary stablecoin systems would fragment the global financial network even further and create walled gardens where each bank’s stablecoin operates in isolation. In his view, such fragmentation will bring out the original purpose of XRP, and this might have been the plan of Ripple CEO Brad Garlinghouse all along. The plan has always been to use XRP as a bridge asset capable of allowing interoperability between otherwise disconnected financial ecosystems. This function aligns with Ripple’s long-standing vision for the XRP Ledger as a neutral settlement layer for easy cross-border value transfer between different digital and fiat systems. At the time of writing, XRP is trading at $2.41 and is a long way away from trading at $1,000. Featured image from Freepik, chart from Tradingview.com
The bank noted that bitcoin and ether are once again moving in step with U.S. equities and gold.
The bank is working with Coinbase to streamline digital asset payments for institutional clients.
Gemini’s trading growth is slowing despite strong card sign-ups and app downloads, said Citigroup, while Bullish momentum is accelerating.
The Wall Street bank initiated coverage of Strategy with a buy/high risk rating and a $485 price target.
Stablecoins are growing alongside crypto, lifting Ethereum while new networks loom and the dollar stays dominant.
The investment bank initiated coverage of Circle with an "Outperform" rating.
The bank’s digital asset head says Citi is aiming for a "credible custody solution" in the coming quarters to serve asset managers and other clients.
A consortium of major banks, including Bank of America, Citi, Deutsche Bank, Goldman Sachs, and UBS, announced on Friday that they will collaborate to explore the development of stablecoins pegged to G7 currencies. A New Era For Crypto In Mainstream Finance The renewed interest in stablecoins comes in the wake of US President Donald Trump’s endorsement of the sector, which has reignited discussions about integrating blockchain technology into mainstream finance. Currently, the stablecoin market is heavily dominated by Tether (USDT), based in El Salvador, which accounts for approximately $179 billion of the total $310 billion in stablecoins circulating, according to data from CoinGecko. The banks involved in this new initiative, which also includes Santander, Barclays, BNP Paribas, MUFG, TD Bank Group, and others, have stated that the goal is to assess whether a collaborative industry offering could enhance competition and bring the benefits of digital assets to the market, all while ensuring compliance. Related Reading: Is The Dogecoin Low In? Analyst Charts Path To $0.60 Notably, France’s Societe Generale recently became the first major bank to issue a dollar-backed stablecoin through its digital asset subsidiary, although it has seen limited adoption, with only $30.6 million currently in circulation. In addition to this consortium, a separate group of nine European banks, including prominent names like ING and UniCredit, is also in the process of launching a euro-denominated stablecoin. Meanwhile, Citi has made strides in the stablecoin space by investing in BVNK, a company focused on stablecoin infrastructure. Demand For Stablecoin Solutions Grows Although Citi has not disclosed the amount of its investment, the co-founder of BVNK, Chris Harmse, told during an interview with CNBC, that the company’s valuation has surpassed $750 million, as reported in its latest funding round. Harmse remarked on the increasing demand for stablecoin infrastructure, particularly with the emergence of regulatory clarity through the passage of the GENIUS Act in the US. This has prompted major US banks to strategically position themselves in the crypto ecosystem. Citi’s CEO, Jane Fraser, has indicated that the bank is contemplating the issuance of its own stablecoin while also exploring custodian services for digital assets. However, Citi is not alone in its pursuit of digital asset integration; JPMorgan Chase has already launched its own stablecoin-like token, JPMD. Related Reading: Crypto Analyst Says Dogecoin Price Is ‘Parabolic Coded’ To $1, Here’s What It Means Banks are increasingly investigating how blockchain technology—originally developed to support Bitcoin—can reduce transaction costs and enhance processing speeds across various financial operations. This exploration includes the concept of tokenization, which involves creating digital tokens that represent traditional assets, such as deposits. For instance, Bank of New York Mellon is currently looking into tokenized deposits, while HSBC has already rolled out a tokenized deposit service. Featured image from DALL-E, chart from TradingView.com
The bank's analysts started coverage of crypto exchange OSL with a buy/high risk rating and a HK$21.80 price objective
The growth of the stablecoin sector as been one of the standout trends in the digital asset industry over the last year.
Citibank has issued fresh 12-month price targets for Bitcoin and Ethereum, laying out a wide set of possible outcomes that range from steep drops to large gains. Related Reading: No Accident: The Powerful Factors Behind Bitcoin’s Late-September Rally According to the bank’s latest note, Bitcoin’s base case sits at $181,000, while a bearish scenario puts it at $82,000. A bullish run could push Bitcoin to $231,000 within a year. Citi Lays Out Wide Range Based on reports, Citi is avoiding a single forecast and instead gives three clear paths for Bitcoin. The bank’s bearish mark of $82,000 represents a 31% fall from Bitcoin’s current quoted price of $120,314. The base case of $181,000 would be a 52% rise. At the top end, Citi’s $231,000 figure is roughly 95% above today’s level. Those are big swings. They show how much uncertainty traders face. Citi introduces new 12-month price targets for digital assets: Bear Base Bull BTC $82k $181k $231k ETH $2k $5.4k $7.3k pic.twitter.com/AlpWPaK2YW — matthew sigel, recovering CFA (@matthew_sigel) October 2, 2025 Macro Forces, Institutional Demand Citi points to the US dollar and gold as key factors that could cap Bitcoin’s upside. A stronger US dollar and weaker gold prices were noted as headwinds for crypto returns. At the same time, the bank highlighted continued interest from large investors and more institutional flows as reasons Bitcoin could climb. The note also compared these targets with Citi’s earlier year-end calls — $132,000 for Bitcoin and $4,500 for Ethereum — and said it extended the timeline to a 12-month horizon that runs to October 2026. Market Reaction, Other Forecasts Reports have disclosed that over the last 24 hours Bitcoin was up 2% and Ethereum rose 2.10%. Other big-name forecasts were mentioned alongside Citi’s view. Standard Chartered and Fundstrat’s Tom Lee are among analysts saying Bitcoin could reach between $200,000 and $250,000 by the end of this year. Tom Lee has put forward a much higher figure for Ethereum, forecasting $15,000 for ETH — a number well above Citi’s most bullish estimate. Related Reading: Fast And Furious: XRP’s Next Rally Predicted To Shock Markets Ethereum’s Path Less Clear? According to Citi, Ethereum faces more unknowns. The bank set a bear case for ETH at $2,000, a base target at $5,400, and a bullish number at $7,300. Those levels sit around a 65% rise from Ethereum’s current price of $4,480 in the best case. Citi explained that Ethereum’s ecosystem is still shifting, so it’s harder to predict how value will be shared across projects and staking participants. Citi’s range is both a warning and a roadmap. It warns that prices can fall sharply — as shown by the $82,000 bear case for Bitcoin and $2,000 for Ethereum — but it also maps possible upside. Featured image from Unsplash, chart from TradingView
The bank forecasts bitcoin at $133,000 by year-end and $181,000 in 12 months.
Wall Street analysts see upside in Bullish’s early execution, citing accelerating SS&O growth, regulatory progress and options trading on the horizon.
Network activity remains the key driver of ether’s value, but much of the recent growth has been on layer-2s, the report noted.
Citi’s survey of 537 industry leaders points to tokenization, T+1 adoption and GenAI reshaping trade processing.
Spot ether ETFs have seen growing demand with cumulative net inflows now more than $13 billion, up from $2.6 billion in April, the report said.
The company said its net revenue for the first six months of 2025 was $67.9 million, against a net loss of $282.5 million.
In the bank's most optimistic scenario, bitcoin could reach $199,000 by the end of the year, while a more bearish setup, pulls the forecast down to $64,000.
Jane Fraser told analysts the bank is evaluating stablecoin issuance and advancing tokenized deposit solutions as part of a broader digital finance strategy.
Citi's $243 price target suggests roughly 34% upside from last night's close just above $181.
As stablecoin usage grows, so does the demand for short-term U.S. Treasuries, the report said.
Such a stablecoin, potentially open to other banks, aims to improve transaction speeds and efficiency while fending off competition from crypto firms.