Citigroup has raised its 12-month Bitcoin price target to 113,000 dollars, reversing two cuts it made earlier in 2026 and signalling renewed confidence in the digital asset market.
The US bank lifted its forecast from 82,000 dollars, arguing that exchange-traded fund (ETF) flows have resumed after a long dry spell and that stronger on-chain activity and a supportive macroeconomic backdrop give the rally a firmer foundation.
A sharp reversal from earlier cuts
The upgrade marks a striking change of tone. In March, Citi cut its 12-month target from 143,000 dollars to 112,000 dollars. It cut again in July, taking the target down to 82,000 dollars and slashing its expected ETF inflow forecast from 10 billion dollars to zero.
The bank now expects 5 billion dollars of ETF inflows over the coming 12 months, a full reversal of that cautious July call. It also raised its Ether target to 3,028 dollars from 2,240 dollars, suggesting analysts see strength broadening beyond Bitcoin alone.
Nine straight sessions of inflows
The driving force behind the upgrade is the return of demand for spot Bitcoin ETFs. Citi notes nine consecutive sessions of net inflows between 17 and 29 September, worth a combined 3.075 billion dollars, the strongest run of buying seen since the funds launched in early 2024.
ETF flows have become the market’s bellwether. When the funds bleed, Bitcoin typically struggles; when they attract money, prices tend to follow. The September streak suggests institutional appetite, which faded in the first half of the year, is back.
Macro tailwinds gather
Analysts point to a supportive macro backdrop. A weaker dollar has eased financial conditions, while renewed Treasury buybacks have injected liquidity into markets. Together, these forces have lifted risk assets across the board.
Bitcoin and Ether have both responded, rallying 40 per cent and 68 per cent respectively over the past three months. Even with those gains, Citi’s 113,000 dollar target sits about 10 per cent below the record high of 126,000 dollars set in October 2025, leaving room for further upside if momentum persists.
What UK investors should watch
For UK investors, the key signal is the weekly flow data. Consistent inflows into spot Bitcoin ETFs suggest institutional demand is durable, while a sudden reversal would be an early warning that sentiment is cooling.
Although UK retail investors cannot currently buy US spot Bitcoin ETFs directly, they can track the flow figures published by data providers as a gauge of global demand, alongside holdings of the handful of crypto exchange-traded products listed in London.
Risks remain
Citi’s call is not without caveats. If the macroeconomic backdrop deteriorates, with the dollar strengthening or liquidity tightening, the flow story could fade quickly. Delayed or stalled crypto legislation in Washington could also dent institutional enthusiasm.
For now, though, the bank’s message is clear: with ETF demand returning and macro conditions supportive, Bitcoin’s next leg higher may be just beginning.
