Citi Raises 12-Month Bitcoin Target to $113K, Ethereum to $3,028
Citigroup forecasts Bitcoin will reach $113,000 by the end of 2026, up from its previous $82,000 target. The bank also raised its Ethereum year-end target to $3,028 from $2,240, citing recovering ETF demand, increased crypto activity, and improving financial conditions.
Citi Sees Steadier Crypto Inflows Ahead
Citi estimates that approximately USD 5 billion will flow into the crypto market over the coming 12 months, while institutional demand remains on a path to recovery. Instead of a sudden influx of investment, the bank believes that advisers and brokerages will slowly become more involved in Bitcoin.
The sentiment comes as U.S. spot crypto ETFs saw increased demand following weaker flows earlier this year. Bitcoin ETFs have also recently had a streak of inflows for nine days, accumulating approximately $3 billion in inflows.
Bitcoin is up almost 40% over the last three months, while Ethereum has risen by approximately 68% over the same timeframe. The rallies have reduced their year-to-date losses to around 4% and 9%, respectively.
Citi also attributed Bitcoin’s rally since its July low to a decreasing dollar and modifications in U.S. Treasury markets. The bank mentioned that longer-dated bond purchases by the Treasury brought the momentum back as crypto had been lagging behind other risk assets.
U.S.–Iran War Remains Part of the Macro Picture
That recovery is taking place while markets continue watching the U.S.–Iran conflict and its effect on energy prices and inflation. Oil prices rose again on October 1 as stalled peace efforts combined with tight global fuel supplies.
President Donald Trump has repeatedly suggested that the US-Iran war could be nearing an end. But the negotiations continue to be tough. Iran said on September 30 that it had received a U.S. response to its latest ceasefire proposal, while talks remained unresolved.
Reuters reports that Iran is also preparing for more forceful retaliation if another major attack happens. Tehran has been continuing with the diplomatic process, but diplomats believe there are slim chances of a short-term deal.
The long-running fight is significant to crypto as it can help propel inflation higher and strain interest-rate expectations. The circumstances can impact the demand for Bitcoin, Ethereum, and different risk belongings even with optimistic ETF inflows.
Regulatory Setback Adds Another Variable
Citi also touched on the September Senate failure to advance the CLARITY Act, which aimed to expand digital asset regulations in the U.S. market. The delay “weakened the chances for full market-structure legislation in the cycle,” the bank said.
However, Citi noted that later Securities and Exchange Commission announcements helped ease some of the negative market reaction.
Despite all those uncertainties, institutional demand has continued to improve. As we reported, the Bitcoin ETF inflows recently helped BTC move above $87,000, while Ethereum also benefited from returning fund demand.
