Citigroup has raised its 12-month Bitcoin price forecast to 113,000 USD, a dramatic reversal from the bearish stance it adopted in July, as institutional demand through exchange traded funds returns and the macro backdrop for crypto improves.
According to Reuters, Citi lifted its Bitcoin estimate from 82,000 USD and raised its Ether forecast from 2,240 USD to 3,028 USD in a note published Wednesday, citing stronger crypto activity, a more supportive macroeconomic environment, and renewed demand through ETFs. Bitcoin was trading near 84,000 USD at the time of the report, putting the new target roughly 35 percent above current levels. Ether changed hands around 2,700 USD, leaving the bank’s estimate approximately 12 percent higher.
A stunning reversal from July
The revision unwinds much of Citi’s midyear capitulation. In July, the bank cut its Bitcoin target to 82,000 USD from 112,000 USD and lowered its Ether forecast to 2,240 USD from 3,175 USD as ETF demand weakened and progress on United States crypto legislation slowed. Those July cuts were themselves a second round of reductions, after the bank had earlier brought its Bitcoin estimate down from 143,000 USD and its Ether target from 4,304 USD earlier in the year.
The whiplash illustrates how quickly institutional positioning on Bitcoin has rotated with ETF flows. Citi’s forecasting track on the asset now reads 143,000, then 112,000, then 82,000, and now 113,000 USD, with ETF demand cited as the main driver behind every leg in both directions.
Five billion in expected inflows
Looking forward, Citi expects roughly 5 billion USD in crypto inflows over the coming 12 months. The bank anticipates the pace will remain slower than during earlier periods of strong demand, but sees financial advisers and brokerages gradually raising their Bitcoin allocations, producing a steadier flow as intermediaries continue adding crypto exposure.
The flow data supports the shift in tone. U.S. spot Bitcoin ETFs had recorded 5.8 billion USD in net outflows for 2026 by July 13. That deficit has since been erased, with year-to-date flows returning to roughly 800 million USD in positive territory by late September.
Recent fund activity underscores the reversal. U.S. spot Bitcoin ETFs pulled in 2.39 billion USD during the September 21 to 25 trading week, finishing all five sessions positive. Monday alone accounted for 999 million USD, with another 714.7 million USD entering the funds on Tuesday. BlackRock’s IBIT collected 1.16 billion USD across the week, followed by 701.6 million USD for Fidelity’s FBTC and 294.7 million USD for ARK 21Shares’ ARKB.
Ether funds recovered in parallel. U.S. spot Ether ETFs brought in 689.8 million USD across five positive sessions after recording roughly 140.6 million USD in net outflows the prior week, with BlackRock’s ETHA leading at 326.2 million USD and Fidelity’s FETH attracting 174.1 million USD.
Treasury buybacks changed the backdrop
Citi tied part of its improved outlook to changes in the macroeconomic 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 the bank cited, saying the move contributed to a softer dollar and helped revive momentum across crypto markets.
The timing lines up. U.S. spot Bitcoin funds attracted roughly 5.3 billion USD after the Treasury announced larger long-dated bond buybacks in August. Bitcoin subsequently climbed roughly 40 percent from its July lows, and Reuters reports BTC and ETH have gained nearly 40 and 68 percent respectively over the past three months, cutting year-to-date losses to around 4 and 9 percent.
The gains have not removed pressure from bond markets. Treasury yields have remained elevated, with the 10-year yield moving above 5 percent in late September. Bitcoin pulled back after briefly trading above 87,000 USD, even as ETF products kept receiving new capital, a divergence between fund demand and price action that Citi is clearly weighing in its assessment.
The CLARITY Act setback did not derail the call
Regulation remains part of the equation. The U.S. Senate failed to advance the Digital Asset Market Clarity Act in September, with the September 15 cloture vote on H.R. 3633 recording 49 votes in favor, 50 against, and one senator not voting, short of the 60 needed to move toward formal floor debate.
The procedural vote did not kill the legislation, and Citi said the failure narrowed the route to passing a crypto market structure bill. But the bank pointed to subsequent Securities and Exchange Commission rule announcements as a factor that reduced the negative sentiment surrounding the setback. Bitcoin recovered more than 10 percent by the end of September following the vote while ETF flows moved back into positive territory during the second half of the month.
What the new targets imply
Citi’s revised forecasts remain well below the targets the bank carried earlier in the year, when its Bitcoin projection stood at 143,000 USD and Ether’s at 4,304 USD. The new numbers position the bank as constructive but not euphoric, expecting a gradual institutional adoption curve rather than a repeat of the frenzied demand that drove earlier projections.
For investors, the practical takeaway is that a major Wall Street institution has now formally re-engaged with the bull case after a summer of retreat, and its reasoning rests on observable flows rather than narrative. If advisers and brokerages deliver the roughly 5 billion USD in allocations Citi projects, the demand backdrop for the next twelve months looks materially different than it did in July. If the flows stall again, history suggests the forecasts can move just as fast in the other direction.
Citi went from 82k to 113k in what, two months? analyst targets are just momentum with a suit on. the ETF flow argument is the only leg worth reading
momentum with a suit on lmao, stealing that. but 35 percent upside from 84k isnt crazy if the etf flows keep stacking
citi went 143k, cut to 82k, now back to 113k in under a year. these targets are theater with a letterhead
^ exactly. the same desk that capitulated in july is now the bull case. buy the flows, ignore the note
35 percent upside from 84k just for ETF flows returning and a softer dollar. Bank price targets move like retail sentiment with extra steps.
35 pct for a 12 month call in this asset class is honestly on the conservative side. could be wrong but thats my read
the ETH target at 3,028 while it trades near 2,700 is basically a momentum trade dressed up as research. same desk called 2,240 before, id wait for the next note before trusting this one
the softer dollar did most of the heavy lifting here. Citi just put a spreadsheet on it. seen these notes flip the moment CPI runs hot
Ether at 3,028 against 2,700 spot is the quiet part of this note. If ETH leads ETF flows again the ratio trade writes itself.