ETF inflows are key driver for crypto, says Citi's Alex Saunders

Core Viewpoint - The bullish case for cryptocurrencies, particularly Bitcoin and Ethereum, is primarily driven by significant inflows expected to continue over the next year [1][2]. Inflows and ETFs - The main source of these inflows is anticipated to come from Exchange-Traded Funds (ETFs), which serve as a high-frequency proxy for measuring investment flows [2][3]. - Recent trends indicate a rise in flows from digital asset treasuries, although these may not be as consistent as ETF flows [2]. Correlation with Other Assets - Bitcoin has shown an increased correlation with gold, often referred to as "digital gold" due to its limited supply [3][4]. - Both Bitcoin and Ethereum are influenced by equity markets and overall risk appetite, which are key macroeconomic factors [4]. Price Forecasts - The 12-month price forecasts are set at $181,000 for Bitcoin and $5,400 for Ethereum, reflecting a bullish outlook based on persistent inflows [5]. Risks to the Bull Case - The primary risk to the bullish outlook is a potential shift in macroeconomic sentiment, particularly a downturn in equity markets, which could reduce inflows and negatively impact prices [6].