Following a broader market recovery, banking giant Citi has revised its 12-month Bitcoin target to over $113,000 and increased its valuation for Strategy. The upward revision follows a market rebound that began in mid-August.
Just months prior in July, when market sentiment deteriorated and Bitcoin fell below $58,000, the Wall Street institution had lowered its one-year Bitcoin target to under $82,000. With Bitcoin subsequently rebounding by roughly 50% to trade around $86,000, Citi raised its 12-month forecast by approximately 40% to $113,400.
Analysts at the bank attributed the new target to stronger cryptocurrency activity, a more supportive macroeconomic environment, and the return of ETF inflows. Citi projects approximately $5 billion in crypto inflows over the coming year as financial advisers and brokerages steadily increase Bitcoin allocations. The bank also noted that while the CLARITY Act failed in the Senate, subsequent announcements from the SEC and the CFTC helped mitigate negative sentiment.
The shift in the bank's cryptocurrency outlook also impacted its valuation for Strategy. In July, Citi held a price target of $136 for MSTR when shares struggled below $100 and STRC traded below par. With MSTR rising over 60% from summer lows to $160, Citi increased its target to $240 and maintained a “buy” rating.
According to the bank, roughly 34% of the projected upside contribution is tied to further Bitcoin appreciation, while another 16% is linked to an expansion in the company’s market-to-net-asset-value premium. Citi previously characterized Strategy as a leveraged and more volatile vehicle for cryptocurrency exposure, noting that valuations remain sensitive to underlying market conditions.
