An unexpected bullish institution has emerged in the Bitcoin space: Citigroup. Citigroup analyst Alex Saunders on Thursday raised the base-case price target for Bitcoin (BTC-USD) from $82,000 to $113,000. Saunders stated: "This upgrade takes into account three dimensions of our analytical framework: on-chain activity, the macroeconomic environment, and ETF fund flows. Ironically, the failure of the Clarity Act to pass has instead intensified market concerns about currency debasement, and combined with the SEC's regulatory rulemaking work, this has pushed cryptocurrencies to reclaim key technical levels. After prices rose above the 200-day moving average, ETF funds began flowing back in. Driven by market optimism, we now forecast $5 billion in net inflows under the base case over the next 12 months, compared to a prior expectation of flat flows."
Bitcoin has just recorded its strongest quarter since 2024. Even as US Treasury yields climbed higher and commodity markets fluctuated, Bitcoin's performance still outpaced other assets such as gold. Bitcoin against the US dollar is quoted at 84,054.09, up 299.63 (+0.36%). This digital asset gained about 43% in the third quarter, though it is still down about 4% year-to-date.
Many crypto industry observers were caught off guard by Bitcoin's latest rally. The Clarity Act stumbled in a Senate procedural vote in September, failing to secure the 60 votes needed to pass the bill. Senate Democrats blocked advancing the Clarity Act, with concerns centered on the bill's government ethics provisions and content related to presidential conflicts of interest. Trump and his family have long been deeply involved in the cryptocurrency sector, and their related holdings have drawn significant attention. Large-scale lobbying by community banks over stablecoin incentive rules, combined with some Republican lawmakers defecting, further weakened momentum for the bill's advancement.
Bitcoin bull and Strategy CEO Michael Saylor said: "The rejection of the Clarity Act is a positive turning point for digital assets." Perhaps he is right.