Following a long term slump, Bitcoin has been on a roll in recent weeks—a trend that is likely to continue, according to Citigroup, which on Thursday raised its 12-month Bitcoin price target to $113,000 from $82,000. The investment bank said the upward pressure would be driven by renewed interest in cryptocurrencies and more favorable market sentiment.
Ethereum is also poised for gains, with Citigroup marking up its future target for the second-largest cryptocurrency’s price from $2,240 to $3,028.
The investment bank forecasted that demand for crypto-backed exchange-traded funds would fuel the price surge, with inflows reaching $5 billion over the next year. It also cited the U.S. Treasury Department’s decision to buy back longer-dated bonds and a weakening U.S. dollar as factors that will help revive momentum for digital assets.
The new targets come after a year of stagnant or declining prices. Bitcoin fell from a high of $124,000 in October 2025 to a low of $58,000 in June. Its fortunes began to turn in mid-August, after the Treasury Department’s bond-buyback announcement helped spur a price jump. By September, Bitcoin had crossed $80,000 for the first time in four months and has since traded around that level.
Citigroup noted that the recent reversal in ETF flows will contribute to Bitcoin’s price surge. This year has been choppy for spot Bitcoin ETFs. In May and June, spot Bitcoin ETFs recorded nearly $7 billion in outflows, according to data from analytics platform SoSoValue. The trend began to reverse in July, and spot Bitcoin ETFs surpassed $2 billion in inflows in September.
The Treasury’s bond-buyback announcement also helped weaken the dollar, giving Bitcoin an additional boost. Historically, a weaker dollar has made investors more willing to take risks, particularly in speculative assets such as cryptocurrencies.
Meanwhile, the U.S. regulatory picture has also given crypto markets a lift. The Clarity Act, a bill that would have set broad rules for the crypto market, failed to advance in the Senate in mid-September. But Bitcoin held up better than some expected. Soon after, the Securities and Exchange Commission moved to use its existing powers to write rules for the industry during the rest of the current administration. Citigroup said those steps helped calm investors’ concerns.