Citigroup has raised its 12 month Bitcoin forecast to $113,000 and its Ether target to $3,028 as ETF inflows return and crypto markets recover from their midyear slump.
Summary
- Citi raised its 12 month Bitcoin target from $82,000 to $113,000 and its Ether forecast from $2,240 to $3,028.
- The bank expects $5 billion in crypto inflows over the next year as advisers and brokerages gradually raise Bitcoin allocations.
- U.S. spot Bitcoin ETF flows have returned to positive territory for 2026 after recording $5.8 billion in net outflows by mid July.
- Citi said Treasury bond buybacks and subsequent SEC rule announcements helped improve the backdrop for crypto markets.
According to Reuters, Citi lifted its Bitcoin estimate from $82,000 and raised its Ether forecast from $2,240 in a Wednesday note, citing stronger crypto activity, a more supportive macroeconomic backdrop and renewed demand through exchange traded funds.
Bitcoin was trading near $84,000 at the time of the report, putting Citi’s new target roughly 35% above current levels. Ether changed hands around $2,700, leaving the bank’s $3,028 estimate approximately 12% higher.
The revisions reverse part of Citi’s more cautious outlook from July. As crypto.news previously reported, the bank had cut its Bitcoin target to $82,000 from $112,000 and lowered its Ether forecast to $2,240 from $3,175 as ETF demand weakened and progress on U.S. crypto legislation slowed.
Citi had already reduced those forecasts earlier in 2026, taking its Bitcoin estimate down from $143,000 and its Ether target from $4,304. ETF flows were among the main factors behind both rounds of revisions.
Citi expects $5 billion in crypto inflows
Institutional demand has since begun moving in the opposite direction, with Citi forecasting $5 billion in crypto inflows over the coming 12 months.
The bank expects the pace to remain slower than during earlier periods of strong demand but sees advisers and brokerages gradually raising their Bitcoin allocations. Citi described the expected flow as steadier as financial intermediaries continue adding crypto exposure.
U.S. spot Bitcoin ETFs had recorded $5.8 billion in net outflows for 2026 by July 13. The deficit has since been erased, with year to date flows returning to roughly $800 million in positive territory by late September.
Recent fund activity supports the change in direction. U.S. spot Bitcoin ETFs recorded $2.39 billion in inflows during the Sept. 21 to Sept. 25 trading week, finishing all five sessions with positive flows.
Monday accounted for $999 million of that amount, while another $714.7 million entered the funds on Tuesday. BlackRock’s IBIT collected $1.16 billion across the week, followed by $701.6 million for Fidelity’s FBTC and $294.7 million for ARK 21Shares’ ARKB.
Ether funds recovered during the same period. U.S. spot Ether ETFs brought in $689.8 million across five positive sessions after recording roughly $140.6 million in net outflows during the previous week. BlackRock’s ETHA led with $326.2 million, while Fidelity’s FETH attracted $174.1 million.
Treasury buybacks have supported crypto activity
Citi tied part of the improvement in its outlook to changes in the macro environment after months in which Bitcoin lagged other risk assets.
The U.S. Treasury’s decision to buy back more longer dated government debt was among the developments cited by the bank. Citi said the move contributed to a softer dollar and helped revive momentum across crypto markets.
ETF demand picked up during the same period. U.S. spot Bitcoin funds attracted roughly $5.3 billion after the Treasury announced larger long dated bond buybacks in August.
Bitcoin subsequently climbed roughly 40% from its July lows. Reuters reported that BTC and ETH have gained nearly 40% and 68%, respectively, over the past three months, cutting their year to date losses to around 4% and 9%.
The gains have not removed pressure from bond markets. U.S. Treasury yields have remained elevated, with the 10 year yield moving above 5% in late September. Bitcoin pulled back after briefly trading above $87,000, even as ETF products continued receiving new capital.
Fund demand therefore remained positive while the underlying asset moved lower from its September high, leaving ETF flows as one of the factors Citi is using to assess its 12 month outlook.
CLARITY Act setback did not derail Citi’s forecast
Regulation remains another part of Citi’s assessment after the U.S. Senate failed to advance the Digital Asset Market Clarity Act in September.
The Senate voted on Sept. 15 on cloture for the motion to proceed to H.R. 3633. The CLARITY Act vote recorded 49 votes in favor and 50 against, with one senator not voting. Sixty votes were required to move the legislation toward formal floor debate.
The vote was procedural and did not amount to final rejection of the legislation. It blocked the Senate from beginning debate through that process, while leaving lawmakers able to continue negotiations or pursue another attempt.
Citi said the failure narrowed the route toward passing a crypto market structure bill but pointed to subsequent Securities and Exchange Commission rule announcements as a factor that reduced some of the negative sentiment surrounding the setback.
Bitcoin recovered after the Senate action. The cryptocurrency gained more than 10% by the end of September following the Sept. 15 vote, while ETF flows moved back into positive territory during the latter half of the month.
Citi’s new forecasts remain below some of the targets the bank carried earlier in the year. Its Bitcoin projection stood at $143,000 before being reduced to $112,000 and then $82,000, while Ether’s earlier $4,304 forecast was lowered first to $3,175 and later to $2,240.
The latest revision puts Bitcoin at $113,000 over the next 12 months and Ether at $3,028, with Citi expecting advisers and brokerages to support approximately $5 billion in inflows as allocations rise gradually.
