Bitcoin’s downturn of 2.3% over the previous 24 hours has not shaken Citi analysts, who continue to uphold their 12-month base case price target of $143,000 for the cryptocurrency. They have also posited a bear case scenario, estimating a drop to $78,000.
Alex Saunders, who leads Citi’s global quant macro strategy, indicated that the price trajectory for Bitcoin will largely depend on a resurgence in ETF demand and optimistic equity forecasts. Conversely, the bear case is influenced by potential recessionary macroeconomic factors.
Currently, Bitcoin has been trading within the range of $89,704 to $92,126 over the last day, marking the end of its new year winning streak. Concurrently, Bitcoin-focused ETFs are facing challenges, having seen $486 million in outflows on Wednesday, as reported by SoSoValue.
Adding insight, Ryan Lee, chief analyst at Bitget, commented on the recent corrective pullback in Bitcoin prices, suggesting it is a natural short-term reaction shaped by profit-taking and prevailing macro uncertainties. Lee remarked that such pullbacks in maturing markets often serve a constructive purpose, clearing excess leverage and paving the way for more stable advances, rather than indicating a fundamental breakdown in market structure.
This demonstrates a resilient sentiment amongst analysts, reinforcing the view that Bitcoin may be poised for a rally in the longer term despite the current fluctuations.