Citi Raises Bitcoin Target to $113K on ETF Flows and Regulatory Clarity
Citi has raised its 12-month Bitcoin target to $113,000, up from $82,000 in July. This move is based on three key factors: a return of ETF flows, continued rulemaking by regulatory agencies, and easing bond market yields. Citi's model assumes $5 billion in inflows into crypto investment products over the next year.
The bank notes that ETF flows have returned to positive territory, with US spot BTC funds swinging from net outflows of about $5.8 billion in mid-July to a positive balance by late September. Regulatory agencies have continued writing rules, including a recent proposal for crypto custody rules, which Citi sees as taking the sting out of the CLARITY Act's failure to pass in the Senate.
The bank also points to the Treasury's long-bond buybacks in August as having pulled crypto out of its summer slump. To reach $113,000, Bitcoin would need to gain about 34%, still below its all-time high above $126,000.