Citigroup Boosts Bitcoin Price Target to $113,000, Cites ETF Inflows and Macro Conditions
Citigroup has significantly raised its 12-month price target for Bitcoin, projecting the cryptocurrency could reach $113,000, a substantial increase from its previous $82,000 forecast. This upward revision reflects a more bullish outlook driven by renewed cryptocurrency activity, improving macroeconomic conditions, and anticipated inflows into crypto exchange-traded funds (ETFs).
Bitcoin’s Path to New Target
Bitcoin is currently trading around $83,773. To reach Citigroup’s new 12-month target of $113,000, the digital asset would need to appreciate by approximately 34.8%.
Shifting Outlook on Bitcoin
This latest adjustment marks a reversal from Citigroup’s more cautious stance earlier in the year. The bank had initially set a $143,000 target for the start of 2026, subsequently lowering it to $112,000 in March and then to $82,000 in July. The recent upward revision suggests a renewed confidence in Bitcoin’s potential.
Ether Price Target Also Raised
In addition to Bitcoin, Citigroup also increased its 12-month price target for Ether (ETH). The new forecast stands at $3,028, up from a previous target of $2,240. With Ether currently trading around $2,700, this represents a required growth of roughly 12.1% to meet the revised target.
Key Drivers for the Bullish Forecast
Citigroup attributes its upgraded outlook to several factors:
- Stronger Crypto Activity: The bank has observed a resurgence in engagement and trading within the cryptocurrency market.
- Supportive Macroeconomic Backdrop: Easing inflation and other favorable economic indicators are contributing to a more positive environment for risk assets.
- Resuming ETF Inflows: Citigroup forecasts approximately $5 billion in crypto ETF inflows over the next 12 months. This influx of capital is expected to provide significant support for cryptocurrency prices.
Gradual Inflow Expected
While optimistic about ETF demand, Citigroup does not anticipate a sudden surge of buying activity. Instead, the bank expects inflows to return at a more measured, yet consistent, pace. This gradual increase is attributed to financial advisors and brokerages slowly integrating Bitcoin into their clients’ portfolios.
Additional Supporting Factors
Citigroup also highlighted a softer U.S. dollar and buybacks of longer-dated U.S. Treasury bonds as elements contributing to the recent recovery in cryptocurrency markets. The bank noted that while the failure of the CLARITY Act vote initially presented a challenge to market structure legislation, subsequent announcements from the Securities and Exchange Commission (SEC) helped to mitigate negative sentiment.
Ether’s Performance
Ether has shown strong performance in recent months, gaining nearly 68% over the past three months. However, it remains down approximately 9% year-to-date.
