Citigroup: Bitcoin's Struggle Tied to Liquidity, Could Reach $180K in 2026
Citigroup attributes Bitcoin’s recent underperformance to a meaningful drop in liquidity driven by quantitative tightening and the aftermath of a higher debt ceiling, noting that BTC historically correlates with liquidity conditions. The bank argues that as liquidity tightens, risk assets including Bitcoin have struggled, and conversely, a restoration of ample liquidity could fuel strong upside for the market.
For investors and traders, the takeaway is that macro liquidity — shaped by central-bank policy and fiscal dynamics — remains a key driver of Bitcoin’s direction. Citigroup’s projection of a possible $180,000 BTC by 2026 hinges on a sustained easing or reversal in liquidity trends, so monitoring Fed signals and broader funding conditions will be crucial. As always, such forecasts are conditional and carry macro and execution risks.