Citigroup has lifted its 12-month Bitcoin price forecast to $113,000 as ETF demand returns and crypto activity improves. The bank also raised its Ether target to $3,028, citing stronger market activity, renewed fund inflows, and a more supportive macro backdrop.
Table of Contents
The new Bitcoin estimate is up from $82,000, while Ether’s forecast increased from $2,240. Bitcoin traded near $84,000 when the forecast was reported. That leaves the updated Bitcoin price target about 35% above the market level.
What Changed in Citi’s Bitcoin Price Forecast?
Citi has downgraded Bitcoin’s expectations several times earlier this year, lowering its projection from $143,000 to $112,000 and then to $82,000 due to reduced ETF interest. Ether’s projections have declined from $4,304 to $3,175 and further to $2,240.
Also Read: Clarity Act Failure Gives Crypto Faster Regulatory Wins, Bitwise CIO Says
The current projection undoes some of this pessimism. Citi expects the price of Bitcoin to reach $113,000 in the next 12 months. Meanwhile, Ether will be priced at $3,028 during this period.
The rise in crypto activity was behind this adjustment. An improved macro environment and ETF flows have also played a role. The two factors have improved since Citi made these downward revisions in July.
Why Is Citi Raising Its Bitcoin Price Target?
Another key driver of the upgrade is institutional demand. Citi estimates that roughly $5 billion will flow into crypto over the coming 12 months. The advisors and brokerages will incrementally increase their exposure.
The U.S. spot Bitcoin ETFs saw roughly $2.39 billion inflow between September 21 and September 25, according to Farside Investors. Every session during that period saw net inflows, with Monday alone seeing around $999 million.
BlackRock’s IBIT saw an inflow of about $1.16 billion for the week. Fidelity’s FBTC saw about $701.6 million of inflow, while ARK 21Shares’ ARKB received close to $294.7 million. This bolsters Citi’s argument on demand.
There was no uninterrupted streak, however. On September 30, the U.S. spot Bitcoin ETFs reported a net outflow of $139.2 million. Demand in late September was still higher compared to other periods this year.
Who Is Driving Demand Behind the Bitcoin Price Outlook?
The larger asset managers continue to play a significant role in the recovery of the ETF. BlackRock, Fidelity, and ARK 21Shares were responsible for much of the September buying. Their products helped in reviving momentum.
The ether ETFs witnessed improvement over the same period. The US spot Ether ETFs saw positive flows between September 21 and September 25. This helped Citi to upgrade both their forecasts.
This was in addition to changes in the macro environment. Bitcoin has made huge gains from its July lows, with Ether making even stronger three-month gains. Citi attributed some of the gains to the weakening dollar.
The bond market continues to be a drag on ETFs. The yields on the US Treasuries were high towards the end of September, with Bitcoin pulling back after moving above $87,000.
What Role Does U.S. Regulation Play?
Policy-related matters were also included in the company’s considerations. On September 15, the US Senate rejected in a 49-50 vote the use of cloture to go forward with the motion to proceed to H.R. 3633.
This was not a final vote on the legislation. Lawmakers could still make another attempt to advance it.
According to Citi, it made the road to the crypto market structure bill more difficult. Further Securities and Exchange Commission rule announcements have alleviated some negative sentiments in the bank’s view. Bitcoin has rebounded by the end of September.
What Could Shape the Bitcoin Price Next?
The new projection by Citigroup is still below its original goal of $143,000 that it had for 2026. Nevertheless, the increase from $82,000 to $113,000 clearly indicates how the assumptions have altered with positive ETF inflows. The Bitcoin price predictions are contingent upon the stability of the ETF inflows.
Citi expects allocation growth to remain gradual. ETF demand, crypto activity, macroeconomic conditions, and U.S. regulation will shape the 12-month outlook. Its Bitcoin price target also depends on continued institutional participation.
Also Read: Bitcoin Credit Market Faces New Test From Strategy Dividend Plan
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
