Citigroup has revised its 12-month price target for Bitcoin upward to $113,000, up from its earlier estimate of $82,000. The bank also increased its forecast for Ethereum to $3,028 from $2,240. These changes come as U.S. spot Bitcoin ETFs have seen net inflows return for 2026 after earlier outflows, alongside a broader recovery in the cryptocurrency market.

Institutional Demand Drives New Forecasts

The revisions reflect a shift from cautious to more optimistic positioning. Citi anticipates approximately $5 billion in crypto-related inflows over the next 12 months. The bank describes these as slower but steadier than previous surges, as advisers and brokerages gradually increase their Bitcoin allocations.

Bitcoin has shown resilience, gaining more than 10 percent by the end of September following the Senate’s failure to advance the Clarity Act on September 15. Subsequent announcements from the Securities and Exchange Commission helped ease negative sentiment. Treasury bond buybacks also contributed to a softer dollar and revived risk appetite across markets.

Ethereum’s target stands at $3,028, representing an increase of around 35 percent for Bitcoin and 12 percent for Ethereum based on current trading levels near $83,800 for BTC and $2,700 for ETH.

Recovery from Mid-Year Slump

Earlier in 2026, Citi had cut its Bitcoin target from $143,000 to $82,000 as ETF flows turned negative, with $5.8 billion in net outflows recorded by mid-July. The situation reversed in recent months, with spot Bitcoin ETFs posting positive year-to-date flows of about $800 million as of late September.

Spot Ethereum ETFs also saw inflows resume, including $689.8 million across five trading days in the latter half of September. These developments have helped narrow Bitcoin’s year-to-date losses to roughly 4 percent and Ethereum’s to about 9 percent.

Regulatory and Macro Factors in Play

The Senate’s procedural failure to advance the Clarity Act on September 15 narrowed the path to a comprehensive market-structure bill. Citi noted that this setback was partially offset by SEC rule announcements that provided a temporary but meaningful positive signal.

At this stage of the electoral cycle, rulemaking clarity may substitute for a durable Clarity Act, the bank said. The outlook does not extend to potential changes in 2028 administration policy.

Ethereum Technical Levels in Focus

Analysts continue to watch Ethereum’s ability to break through the $2,800 resistance level. A sustained move above this threshold could bring the asset closer to the $3,000 psychological mark and align more closely with Citi’s forecast. Roughly 35 percent of Ethereum’s total supply is now staked, tightening available market liquidity.

Recent ETF inflows for Ethereum have been positive but uneven, with some daily sessions showing outflows toward the end of September. Volatility has limited breakout attempts despite strong institutional participation.

Bitcoin sits about 10 percent below its October 2025 all-time high of roughly $126,200, even with the upgraded target.

Broader Market Context

The cryptocurrency sector has shown strength in recent sessions, with Bitcoin closing out its best quarter since 2024. Daily ETF inflows reached $2.39 billion during one week in late September, the largest single-week total since October 2025. This momentum has kept flows positive for 2026 despite a brief pullback after Bitcoin briefly traded above $87,000.

Citi’s note underscores the gradual nature of the expected inflow recovery. It does not imply a single catalyst or sudden surge but rather a measured rebuild of institutional exposure as financial intermediaries continue adding digital assets to portfolios.