Citi Raises 12-Month Bitcoin Target to $113,000 as Institutional ETF Demand Returns

Citi has raised its 12-month price targets for Bitcoin and Ether, pointing to a potential recovery in crypto investment flows, supportive macroeconomic conditions, and improving market sentiment.

According to a Reuters report citing a Citi note released Wednesday, the bank lifted its Bitcoin target from $82,000 to $113,000 over the next 12 months. Its Ether target rose from $2,240 to $3,028.

The revised forecasts reflect Citi’s view that demand for digital assets could gradually recover as investment flows return to crypto-related exchange-traded products and financial institutions continue expanding their exposure to the sector.

The targets remain dependent on the continuation of these supportive conditions and do not represent a guarantee of future prices.

Citi Raises Bitcoin and Ether Targets

Citi’s new projections imply potential gains of roughly 35% for Bitcoin and 12% for Ether compared with the levels underpinning its previous estimates.

The difference between the two targets suggests that Citi sees greater potential upside for Bitcoin over the coming year. However, the bank’s projections remain tied to the trajectory of investment flows, macroeconomic conditions and the regulatory environment.

Crypto markets remain sensitive to shifts in investor sentiment and broader economic conditions, meaning changes in interest-rate expectations, regulation or risk appetite could alter the path toward those targets.

Bitcoin ETF Flows Return to Focus

A key part of Citi’s outlook is the expected recovery in capital flowing into investment products linked to digital assets, particularly spot Bitcoin ETFs.

The bank expects inflows to return gradually, with financial advisers and brokerage firms potentially increasing allocations to Bitcoin over time. Citi estimates that these flows could reach around $5 billion over the next 12 months.

Such demand could provide additional support for Bitcoin if inflows remain consistent and investor appetite for higher-risk assets holds up.

Spot ETFs have become an important channel for traditional investors seeking Bitcoin exposure because they provide access through conventional financial markets without requiring investors to directly purchase and hold the cryptocurrency.

US Bitcoin ETFs Reverse Earlier Outflows

US spot Bitcoin ETFs had recorded $5.8 billion in net outflows from the beginning of the year through July 13, according to the figures cited in the report.

That trend subsequently reversed, with cumulative flows turning positive and reaching $800 million in net inflows by late September.

The shift points to an improvement in demand for Bitcoin investment products after a period of sustained withdrawals. However, whether the recovery can continue remains dependent on market conditions and investors’ willingness to maintain exposure to risk assets.

US Regulation Remains a Market Factor

Citi also pointed to developments in the US regulatory environment as another factor influencing crypto sentiment.

Although the US Senate failed to advance the CLARITY Act on September 15, the bank said subsequent announcements from the Securities and Exchange Commission helped ease some of the negative sentiment surrounding the setback.

Regulatory clarity remains an important consideration for institutional investors assessing digital assets. Progress in establishing clearer rules could reduce some of the uncertainty surrounding the sector, although the market impact will depend on the substance and scope of future regulatory decisions.

Bitcoin subsequently gained more than 10% by the end of September, according to the source material, suggesting that broader market developments continued to influence prices beyond the Senate vote itself.

Treasury Buybacks Add to the Macro Picture

Citi also highlighted the US Treasury’s decision to repurchase longer-dated government bonds, arguing that the action helped restore momentum to crypto markets after several months of relatively weak performance.

The reference reflects a broader connection between digital assets and macroeconomic conditions. Changes in bond markets, liquidity expectations and interest-rate outlooks can influence investor appetite for assets considered higher risk.

Still, no single factor determines the performance of Bitcoin or Ether. ETF flows, regulatory developments, liquidity conditions and broader market demand can all shape the direction of digital assets.

Citi’s revised targets therefore represent a scenario built around recovering institutional demand and improving market conditions, rather than a guaranteed path for Bitcoin and Ether.