Citigroup raised its 12-month price targets for bitcoin and Ethereum in a research note reported on Oct. 1, citing renewed inflows into cryptocurrency exchange-traded funds and favorable macroeconomic conditions. The bank lifted its bitcoin target to $113,000 from $82,000 and its Ethereum target to $3,028 from $2,240, implying potential gains of about 35% and 12%, respectively, from levels at the time, according to CoinDesk.

Citi expects more sustainable ETF inflows

Citi expects inflows into cryptocurrency-based products, including ETFs, to be “slower, but more sustainable.” The bank said advisers and brokerage firms would gradually increase bitcoin allocations in client portfolios, potentially generating about $5 billion in net inflows over the next 12 months.

U.S. spot bitcoin ETFs recorded a combined net outflow of $5.8 billion for the year through July 13. The trend subsequently reversed, and cumulative net flows for 2026 returned to positive territory by the end of September.

Crypto ETFs attracted $3.4 billion from Sept. 21 through Sept. 25, according to SoSoValue. U.S. spot bitcoin ETFs accounted for $2.39 billion of that total, marking the sector’s strongest weekly result of 2026 and its largest inflow since October 2025.

Ethereum ETFs received $689.88 million over the same period. BlackRock’s ETHA led individual funds with $326.17 million in inflows. Among altcoin ETFs, Solana-based products attracted $188.22 million, while XRP funds received $75.59 million.

Regulatory developments offer a temporary boost

Citi also cited regulatory factors. Although the U.S. Senate failed to advance the CLARITY Act on Sept. 15, subsequent decisions by the U.S. Securities and Exchange Commission eased negative market sentiment, in the bank’s view.

Citi described those measures as a “temporary but meaningful positive” and said: “At this stage of the electoral cycle stage, rulemaking clarity may substitute for a durable CLARITY Act.”

The bank warned that regulatory policy could shift after the 2028 presidential election, although it did not incorporate that risk into its current 12-month forecast.

Bitcoin rose by more than 10% between the failed Sept. 15 vote and the end of the month. It finished September about 6.5% higher, while Ethereum gained nearly 9%. Bitcoin fell below $75,000 in mid-September before recovering above $85,000, while Ethereum climbed above $2,700.

Citi also linked the cryptocurrency market’s rebound to the U.S. Treasury’s decision to buy back long-term government bonds. The bank said the operation helped restore momentum after several months in which digital assets had lagged other risk assets.

Source: Incrypted