Institutional Interest in Crypto: Coinbase's Optimism and Citigroup's Price Target

Coinbase is expressing cautious optimism for the cryptocurrency market in 2026, highlighting a potential turning point driven by regulatory clarity and stablecoin adoption. According to a report by Coinbase Institutional, the digital asset market is evolving from a niche to a key pillar of global financial infrastructure, despite volatility in 2025.

They anticipate clearer regulatory frameworks, such as progress on stablecoin legislation including the GENIUS Act, will enhance institutional participation. Meanwhile, Citigroup has set a bullish price target for Bitcoin at $143,000 within the next 12 months, citing increased digital asset adoption fueled by expected U.S. legislation.

Citi analysts forecast Bitcoin could range between $80,000 and $90,000 initially, with significant upside driven by revived ETF demand and positive stock market trends. However, they also caution about a bear scenario, potentially dropping to $78,500 if a global recession occurs.

Coinbase's report notes Bitcoin's volatility has decreased, now resembling high-growth tech stocks, indicating a maturation of the asset class, as it becomes more integrated into mainstream finance.