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Bitcoin News Today: Wall Street Backs BTC, Citi Predicts $199K High if Institutional Demand Accelerates
A new report from Citi outlines the latest outlook for digital assets, predicting that Bitcoin could reach a price of up to $199,000 by the end of 2025. The report provides a base-case estimate of $135,000 and a worst-case scenario of $64,000.
These projections reflect ongoing institutional interest and indicate that spot Bitcoin exchange-traded funds (ETFs) are gradually shaping market dynamics.
The report attributes its predictions to three key factors: user adoption, the macroeconomic situation, and inflows from exchange-traded funds (ETFs). Citi estimates that demand for spot ETFs accounts for over 40 percent of Bitcoin's price movement. The model provided by the bank suggests a 20 percent increase in user adoption and forecasts ETF inflows of up to $15 billion, which could have a significant impact on the value of Bitcoin.
ETF Demand and Institutional Interest Drive Market Behavior
Institutional activity redesigned Bitcoin's market structure in 2025. ETF inflows, led by significant funds such as BlackRock (IBIT) and Fidelity (FBTC), have generated long-term demand for allocators. Each of these funds has over $15 billion in assets under management, and overall inflows to U.S.-based Bitcoin ETFs so far this year are over $58 billion.
Citi indicates that such inflows are currently influencing Bitcoin's daily market movements more than ever. Bitcoin is becoming increasingly susceptible to capital flows in macro markets as demand driven by ETFs increases. Analysts note that such structural inflows can diminish volatility and increase exposure to the rest of the financial markets.
Also Read: Companies are Holding Ethereum, Not Just Bitcoin: Here’s Why
Macro Conditions and Adoption Metrics Remain Key Variables
Although the demand for ETFs remains high, macroeconomic uncertainty continues to impact Bitcoin. The Federal Reserve's changing stance to adopt a more accommodative monetary policy, compared to the more modest monetary policies of other central banks worldwide, has represented global financial conditions in the base-case scenario of the Citi model by capturing macro-related risks.
User adoption is also helping to create long-term value. The increase in the number of wallets, usage of layer two, and more activity in emerging markets like Southeast Asia and Latin America are some factors generating Bitcoin's network effects. The cases of use that everyone is experiencing in these areas are associated with remittance requirements, inflation hedging, and domestic currency fluctuations.
