Ether's Rising Tide: Citigroup Updates Crypto Forecasts

Citigroup has updated its forecasts for ether and bitcoin, driven by changing investor preferences and broader economic trends. Ether is seen as more attractive due to its yield generation, with the brokerage predicting further upside. Bitcoin's outlook was slightly lowered due to macroeconomic offsets like a stronger dollar.

In a new forecast release, Citigroup has revised expectations for major cryptocurrencies, ether and bitcoin, as changing investor preferences and macroeconomic factors drive market dynamics.

Ether, offering yield generation, is favored over bitcoin, which relies on price appreciation. Citigroup now targets $133,000 for bitcoin by year-end, a 12% increase from current levels, while ether is expected to rise to $4,500, signaling a 3% increase.

Macro factors such as a stronger dollar and weaker gold prices have slightly lowered bitcoin's outlook. However, Citi maintains that the 'digital gold' narrative is vital, projecting further inflows. Ether's potential stems from increased adoption and innovations in decentralised finance platforms.

(With inputs from agencies.)