Citi Raises Bitcoin Target to $113,400 and Strategy to $240 on Rebounding Market

Wall Street banking giant Citi has raised its 12-month Bitcoin (BTC) price target to $113,400 from $82,000, while simultaneously boosting its price target for Strategy (MSTR) to $240.\n\n## Citi Reverses July Caution on Bitcoin\n\nIn July, Citi reduced its 12-month forecast for Bitcoin to under $82,000 after market sentiment deteriorated and BTC fell below $58,000. Since hitting those late-2024 lows, the cryptocurrency has rebounded roughly 50% to trade near $86,000 (with spot prices around $83,900). Citi responded by raising its target by approximately 40% to $113,400, pointing to a 35% potential upside from current levels as Bitcoin clears key resistance levels.\n\nCiti analysts cited increased cryptocurrency network activity, supportive macroeconomic conditions, currency-debasement concerns, and returning ETF inflows as core drivers for the upgrade. The bank estimates $5 billion in institutional crypto inflows over the next year as financial advisers and brokerages expand allocations. Although the CLARITY Act recently failed in the Senate, subsequent policy statements from the SEC and CFTC helped mitigate negative market sentiment.\n\n## Strategy Target Boosted to $240\n\nCiti also significantly increased its valuation for Strategy, the largest corporate holder of Bitcoin. The bank raised its MSTR price target from $136 to $240 while keeping a "buy" rating on the stock. MSTR shares have recovered to $160, up more than 60% from summer lows under $100, when its preferred stock STRC traded well below par value, a dynamic reflected in previous Strategy preferred stock metrics.\n\nAccording to Citi, 34% of the projected upside for MSTR stems from anticipated Bitcoin price gains, while 16% depends on an expansion in the company's market-to-net-asset-value (NAV) premium. Citi noted that Strategy remains a leveraged and volatile vehicle for investors seeking exposure to BTC.\n\n## Key Takeaways\n\n- Citi raised its 12-month Bitcoin target to $113,400, up 40% from $82,000.\n- The bank projects $5 billion in crypto inflows over the next 12 months.\n- Strategy (MSTR) target was raised from $136 to $240 with a "buy" rating maintained.\n- MSTR shares have gained over 60% since summer, reaching $160.\n\n## Why It Matters\n\nCiti's upward revisions signal renewed Wall Street confidence in digital asset valuations following mid-summer volatility. By attributing 16% of Strategy's projected growth to market-to-NAV premium expansion, Citi highlights how institutional investors treat corporate Bitcoin treasuries as high-beta market instruments. Furthermore, regulatory guidance from the SEC and CFTC appears to be offsetting legislative delays, sustaining institutional momentum through spot ETF channels.