Analysts at banking giant Citi are laying out price targets on Bitcoin (BTC<\/a>) based on a surprisingly simple forecast model.<\/p>\n In a new report seen by the Financial Times<\/a>, Citigroup analysts Alex Saunders and Nathaniel Rupert offer a new way of valuing digital assets, ostensibly suggesting that the price of Bitcoin is influenced simply by how many people want to own it.<\/p>\n While Citi\u2019s previous Bitcoin price models incorporated various data inputs like mining electricity costs, adoption rates and more, the analysts have updated their forecast to account for the reality that crypto assets are very much a part of the traditional macroeconomic picture, rather than an isolated subset without relevance to the average investor\u2019s portfolio.<\/p>\n \u201cAround the fall of FTX, the majority of client questions were, \u2018How does crypto effect MY market or the macroeconomy?\u2019 \u2013 the answer then was, probably not much.<\/em><\/p>\n We think that is changing. Firstly, crypto assets have grown and now represent a more meaningful amount of capital. Crypto market-caps now rival all but the largest-cap equity names. Secondly, crypto-related assets are now meaningful parts of some of the largest financial indices. Crypto-related securities are now members of the S&P 500, Nasdaq, and Russell. Importantly, this means even crypto-agnostic clients need to have a view to manage their portfolios.\u201d<\/em><\/p>\n Citi now has a \u201cbull case\u201d price target of $199,340 for BTC at the end of this year, a \u201cbase case\u201d for $135,133, and a \u201cbear\u201d case for $63,675.<\/p>\n \u00a0<\/p>\n As of late, the analysts say that the price of BTC is primarily driven by one factor.<\/p>\n The Citi analysts say that the net weekly flows into Bitcoin-based exchange-traded funds (ETFs) have had a \u201cvery strong contemporaneous relationship\u201d with the returns on BTC.<\/p>\n \u201cSince launch, 41% of Bitcoin return variation can be explained by flows alone (the relationship is just as strong even accounting for equity returns). So far this year, we have seen just over $19 billion of flows, including $5.5 billion month-to-date. We expect flows to continue for the rest of the year as more institutions approve and potentially advise underlying clients on these vehicles.<\/em><\/p>\n There is significant uncertainty around these flows; we forecast $15 billion given the pace seen so far year-to-date. This would slightly exceed last year\u2019s launch, but the recent acceleration in flows presents upside risk \u2013 given each $1 billion of weekly flows is associated with a 3.6% return increase, flows have a meaningful impact on our forecast.\u201d<\/em><\/p>\n Follow us on X<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>   Generated Image: DALLE3<\/span><\/em><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Analysts at banking giant Citi are laying out price targets on Bitcoin (BTC) based on a surprisingly simple forecast model. In a new report seen by the Financial Times, Citigroup analysts Alex Saunders and Nathaniel Rupert offer a new way of valuing digital assets, ostensibly suggesting that the price of Bitcoin is influenced simply by […]<\/p>\n","protected":false},"author":2,"featured_media":400084,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-400083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/400083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=400083"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/400083\/revisions"}],"predecessor-version":[{"id":400085,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/400083\/revisions\/400085"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/400084"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=400083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=400083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=400083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n
Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
\n
Check Price Action<\/a><\/span><\/em>
\n
Surf The Daily Hodl Mix<\/a><\/span><\/em>
\n<\/p>\n
\n![](\"https:\/\/dailyhodl.com\/wp-content\/uploads\/2018\/06\/Get-Alerts-728x90.png\")
<\/center><\/p>\nDisclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.<\/h6>\n<\/div>\n