Citi Raises Bitcoin Target to $113,000 Amid Improved ETF Flows

Citigroup has raised its 12-month Bitcoin price target to $113,000, from $82,000, citing improved ETF flows and increased demand from advisers and brokerages. This comes just two months after the bank cut its target to $82,000 from $112,000, and a month after it raised its Ethereum forecast to $3,028. However, the market seems to be moving in the opposite direction, with US spot Bitcoin ETFs shedding $148.69 million on September 30, the day Citi released its note.

Citi analyst Alex Saunders attributes the revision to the bank's improved ETF flow assumption, which has increased from $10 billion to $5 billion over 12 months. Saunders notes that the bank's previous cut was tied to decreased ETF inflows, but that has since resumed as prices broke above their 200-day moving averages. Bitcoin also posted a golden cross on September 8, when its 50-day average rose above the 200-day line.

Despite Citi's bullish forecast, some market indicators suggest that demand may be cooling. CryptoQuant estimates that apparent spot demand shrank by 170,000 BTC in 30 days, and Bitcoin ETF demand cooled late in September. However, the supply factors remain supportive, with just 3.49% of Ethereum supply on exchanges, leaving fewer coins to sell.