In a recent analysis, Citi analysts have maintained their optimistic outlook on Bitcoin, despite the cryptocurrency experiencing a 2.3% decline over the past 24 hours. The analysts set a 12-month base case price expectation of $143,000 for Bitcoin, alongside a bear case projection of $78,000. Alex Saunders, Citi’s head of global quant macro strategy, emphasized that the cryptocurrency’s price will largely be influenced by renewed demand for Bitcoin ETFs and promising equity market forecasts. Conversely, the bear case hinges on potential recession-driven macroeconomic factors.
Bitcoin’s trading range over the last day has fluctuated between $89,704 and $92,126, marking the end of its New Year winning streak. In parallel with Bitcoin’s price movements, the Bitcoin ETF market seems to be facing turbulence, with reported outflows totaling $486 million on Wednesday, as noted by SoSoValue.
Ryan Lee, chief analyst at Bitget, commented on the situation, likening the recent pullback to a typical short-term correction that often accompanies profit-taking and prevailing macroeconomic uncertainties. He remarked that in maturing markets, such corrections can be constructive, serving to eliminate excess leverage and paving the way for more sustainable advancements rather than indicating a fundamental breakdown in market structure.
