Crypto News
Citi raised its 12-month Bitcoin forecast to $113,000 from $82,000 on October 1, a $31,000 increase, as the price tested $85,000. The bank cited stronger crypto activity, a more supportive macro backdrop and renewed ETF inflows. Its outlook assumes $5 billion of crypto inflows over the next 12 months, with advisers and brokerages increasing Bitcoin allocations gradually rather than all at once.
Why it matters
The upgrade raises Citi’s previous target by about 37.8%, but its demand assumption is measured. Steady allocations could provide a persistent bid for Bitcoin without the sharp price impulse that a concentrated wave of inflows might produce. That makes sustained ETF demand more important to the forecast than any single positive-flow session.
Citi also raised its Ether forecast to $3,028 from $2,240. On regulation, the bank noted that the Senate’s failure to advance the Clarity Act set back the wider industry, while subsequent Securities and Exchange Commission rule announcements helped ease negative sentiment.
Market impact
Bitcoin gained nearly 40% over the three months through October 1, narrowing its year-to-date loss to about 4%. The $113,000 target is a 12-month reference point, not evidence that the next leg of the rally is assured.
Bitcoin’s recovery from its July lows coincided with a softer dollar and US Treasury buybacks of longer-dated bonds. Those conditions form part of the macro backdrop, but their timing alone does not establish what drove the advance. The next test for Citi’s forecast is whether ETF inflows and institutional allocations keep building. A sustained return to outflows would weaken its demand case.
Frequently asked questions
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How much did Citi raise its 12-month Bitcoin forecast?
Citi increased its target by $31,000, from $82,000 to $113,000, a rise of about 37.8% from its previous forecast.
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What kind of inflows does Citi expect over the next 12 months?
Citi’s outlook includes $5 billion of crypto inflows. It expects advisers and brokerages to increase Bitcoin allocations gradually rather than all at once.
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Why does sustained ETF demand matter to Citi’s outlook?
Citi’s higher Bitcoin target depends in part on renewed inflows and gradually rising institutional allocations. A sustained return to outflows would weaken that demand case.
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How had Bitcoin performed before Citi’s forecast change?
Bitcoin gained nearly 40% over the three months through October 1, narrowing its year-to-date loss to about 4%.
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Did Citi change its Ether forecast as well?
Yes. Citi raised its Ether forecast to $3,028 from $2,240.
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