Citi has adopted a positive outlook on Bitcoin, highlighting the easing of U.S. regulations and a resurgence in institutional interest.
Following a significant market correction, leading financial institutions are now suggesting that Bitcoin might be stabilizing rather than facing further declines.
Wall Street is beginning to perceive Bitcoin not merely as a trading asset but as an essential macroeconomic asset.
Bitcoin is regaining considerable focus from Wall Street players. Major banks such as Citigroup and JPMorgan have presented new forecasts indicating substantial potential for Bitcoin in the coming year, driven by regulatory developments, market dynamics, and institutional engagement.
This shift comes at an interesting time. After experiencing sharp corrections and increased regulatory oversight, these banks contend that the most challenging phase may be behind us.
Citi Predicts Price Surge Amid Regulatory Improvements
Citigroup has projected a 12-month price target for Bitcoin at $143,000 due to increasing adoption rates and favorable regulatory changes. At the time of their report, Bitcoin was valued around $87,932—indicating significant upside potential if these trends persist.
“We expect that regulatory drivers will enhance adoption rates and capital flows,” Citi stated.
The bank pointed out recent policy changes in the U.S., particularly following former President Donald Trump’s renewed endorsement of digital currencies. This development aligns with dropped lawsuits against major cryptocurrency firms alongside fresh legislative momentum in Congress; lawmakers have indicated that discussions regarding long-awaited crypto market structure legislation are set to begin in January.
Today we had an excellent discussion with Chairmen @SenatorTimScott and @JohnBoozman who confirmed that Clarity’s markup is on track for January. Thanks to their leadership along with @RepFrenchHill and @CongressmanGT in the House—we’re closer than ever to passing this landmark crypto legislation…
— David Sacks (@davidsacks47) December 18, 2025
Citi also acknowledged recent fluctuations within the market; notably, Bitcoin experienced a steep decline last November when it lost over $18,000—the largest dollar drop since May 2021—as investor confidence waned amid rising concerns about technology valuations.
Nonetheless, Citi believes prices are beginning to stabilize after this downturn.
“Token values are aligning more closely with statistical indicators based on user activity following October’s peak,” noted the bank analysts.
If conditions improve further according to Citi’s optimistic projections; they foresee Bitcoin potentially reaching $189,000 while maintaining a conservative estimate near $78,000 under less favorable circumstances.
The Perspective from JPMorgan: Selloff Challenges May Be Overcome
JPMorgan’s recent analysis emphasized market mechanics over regulation issues. The bank anticipates that within six months to one year ahead; Bitcoin could rise approximately up to $1700 due primarily because of completed deleveraging cycles observed recently within markets themselves.
“The current stabilization suggests we’ve likely moved past deleveraging related specifically towards perpetual futures,” wrote analysts from JPMorgan.
Their observations noted record liquidations occurring on October tenth which marked history’s largest event followed by smaller sell-offs during November month afterwards resulting back towards normal levels concerning futures positioning once again .
A Growing Parallels Between Gold And BTC
Additonally ,JPMorgan drew comparisons between bitcoin & gold emphasizing how increased volatility surrounding gold has enhanced its attractiveness comparatively risk-adjusted basis framework thus indicating bitcoin still trades significantly below its theoretical fair value point .
Bitcoin increasingly undergoes analysis akin macroeconomic assets representing crucial shifts being monitored closely moving forward regarding future pricing trajectories . </P