The Real Reason Bitcoin Has Struggled and Why It Can Surge to $180,000 in 2026, According to Citigroup

Bitcoin (CRYPTO: BTC), the largest cryptocurrency in the world, has stumbled as of late. After hitting an all-time high in early October of more than $126,000 per token, Bitcoin dipped pretty significantly, falling back to the $100,000 level and briefly into bear market territory. The token traded at about $103,000 as of Nov. 11. Some investors believe the decline can be attributed to the market anticipating fewer interest rate cuts by the Federal Reserve.But the real reason for Bitcoin's decline is likely due to another reason, according to analysts at Citigroup, who are still largely bullish on the token. In fact, Citigroup sees the token rebounding and surging past $180,000 per token in roughly a year's time.Falling interest rates tend to be a bullish indicator for the likes of crypto, Bitcoin, and tech stocks because for one, lower yields lead investors to reach for stronger returns in riskier assets. However, the strategists at Citigroup, led by Dirk Willer, believe one of the main culprits behind Bitcoin's descent is falling liquidity in the economy. This can be observed through bank reserves held at the Federal Reserve and the U.S. Department of Treasury's General Account (TGA), which is maintained at the Fed and accounted for as a liability on the central bank's balance sheet.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool