Citigroup raised its outlook for Bitcoin (BTC) over the next 12 months from the previous $82,000 to $113,000, and also lifted its Ethereum (ETH) target price to $3,028. The rationale is a recovery in demand for crypto exchange-traded funds (ETFs).
Key point
Citigroup raises its 12-month Bitcoin price target to $113,000 and its Ethereum target to $3,028.
Expect about $5 billion in inflows into cryptocurrencies over the next year.
The new Bitcoin target price is about 10% lower than the all-time high recorded in October 2025.
Citigroup raises its Bitcoin price target
In its Wednesday report, Citigroup raised both its Bitcoin and Ethereum target prices. The report said that crypto trading activity is regaining momentum and that ETF inflows are returning amid a more favorable macroeconomic environment. The prior Ethereum target was $2,240.
Given that Bitcoin is trading at around $83,900 and Ethereum at around $2,700, the new target prices suggest additional upside of roughly 35% and 12%, respectively.
Citigroup expects roughly $5 billion in new capital to flow into the cryptocurrency market over the next 12 months. The view is that advisory firms and brokerages will gradually incorporate Bitcoin, sustaining a “slow but steady (sticky)” flow.
U.S. spot Bitcoin ETFs have already turned things around. By July 13, the cumulative outflow of $5.8 billion had essentially been fully recouped, and as of the end of September, the ETFs are recording about $800 million in net inflows for 2026.
The price rally also accelerated sharply. According to Citigroup, over the past three months, Bitcoin surged by about 40% and Ethereum by about 68%, reducing losses since the start of the year to roughly 4% and 9%, respectively. Still, the new Bitcoin target price remains about 10% below the all-time high of around $126,000 recorded in October 2025.
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Bitcoin regulatory outlook
Citigroup also pointed out that the U.S. Senate did not make progress on the so-called “Clarity” bill by September 15. The bill was intended to clarify crypto market rules, but the bank assessed that the bill’s rejection has “narrowed the path to a market-structure bill.”
However, the subsequent release of regulatory guidance by the U.S. Securities and Exchange Commission (SEC) was assessed as a “temporary but meaningful positive factor.”
The market did not view political events as any major negative development. Bitcoin rebounded by more than 10% by the end of September. Citigroup said that in the current election cycle, the rules from individual regulators could effectively serve in place of comprehensive legislation, but it also warned of “policy risk,” noting that the rules could be overturned again when a new administration takes office in 2028.
Macroeconomic factors also provided support. Citigroup, in particular, cited the U.S. Treasury’s expanded long-term Treasury buyback (repurchase) measures. The move was identified as a factor that eased the strength of the U.S. dollar and helped spur a recovery in the cryptocurrency market after it had lagged behind other risk assets for several months.
Citigroup’s past outlook history
This upward revision partially reversed the trend of target price cuts that had continued since the beginning of this year. At the time, Citigroup lowered its outlook repeatedly as capital drained from crypto funds and related legislative work in the U.S. was delayed.
After cutting its Bitcoin target price from $143,000 to $112,000 at one point, Citigroup further lowered it to as low as $82,000 in July. Its Ethereum outlook was trimmed consecutively from $4,304 to $3,175, and then to $2,240. The bank said ETF capital flows were a key variable in this process.
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