Citigroup has raised its 12-month price targets for both Bitcoin and Ether, citing stronger cryptocurrency market activity, a more favorable macroeconomic environment, and a projected return of inflows into exchange-traded funds. The revision was reported by Wu Blockchain, citing Reuters, in a post on X.

The bank lifted its Bitcoin forecast to $113,000 from $82,000 and raised its Ether target to $3,028 from $2,240. Alongside the higher price targets, Citi is projecting approximately $5 billion in net crypto ETF inflows over the coming 12 months as demand for digital assets resumes. Twelve-month figures of this kind are analyst projections built on a bank's own scenario assumptions, and the drivers behind the revision are as significant as the headline numbers.

ETF Inflows Underpin Higher Targets

Citi's revised outlook follows a period in which ETF demand had weakened. The bank now expects inflows to return as financial advisers and brokerages gradually increase their allocations to Bitcoin and other crypto assets.

The projected $5 billion in net inflows represents one of the principal factors behind the higher 12-month targets. Citi's updated forecasts therefore weigh both current market activity and the bank's assessment of renewed demand through regulated investment products. Spot Bitcoin and Ether ETFs listed on U.S. exchanges won regulatory approval in 2024 and hold the underlying tokens directly, giving investors exposure without the need to manage private keys — a structure that has made net-flow figures one of the industry's most closely watched demand indicators.

The revisions also follow a recovery in the prices of the two largest cryptocurrencies. According to figures reported by Wu Blockchain, citing Reuters, Bitcoin and Ether have rebounded nearly 40% and 68%, respectively, over the past three months.

Regulatory Setback Did Not Derail the Recovery

Citi's report also addressed the U.S. regulatory backdrop. The bank noted that the Senate's failure last week to advance the CLARITY Act narrowed the legislative path toward a comprehensive market-structure framework for digital assets. The bill, which passed the House in July 2025, is designed in part to clarify how digital-asset oversight is divided between the Securities and Exchange Commission and the Commodity Futures Trading Commission, meaning Senate passage remains required before it can become law.

That setback was followed by regulatory developments at the U.S. Securities and Exchange Commission, which Citi viewed as helping to limit negative market sentiment. The combination of legislative uncertainty and subsequent regulatory clarification now forms part of the bank's assessment of the crypto market environment.

Despite the Senate's failure to advance the legislation, the broader cryptocurrency market continued to recover, with Citi pointing to other developments supporting its revised outlook.

Treasury Buybacks and Dollar Weakness

Citi further linked the recent recovery in digital assets to U.S. Treasury buybacks of longer-dated bonds. According to the bank, the buybacks weakened the dollar and helped rekindle upward momentum across digital assets.

The macroeconomic backdrop stands as another component of Citi's revised forecasts, alongside stronger crypto market activity and the anticipated resumption of ETF inflows.

Under the new projections, Bitcoin is expected to reach $113,000 over the next 12 months, with Ether set at $3,028. The bank's outlook will depend in part on whether the expected ETF inflows materialize and on whether the broader regulatory and macroeconomic conditions cited in its assessment persist. The inflow assumption can be tracked against publicly reported ETF flow data in the months ahead, while the legislative side of the assessment hinges on whether the Senate revisits the market-structure bill.

Source: Hokanews