Citigroup Lifts Bitcoin and Ethereum Price Targets Amid Renewed Inflows

Citigroup has raised its 12-month price target for Bitcoin to $113,000 and Ethereum to $3,028. The bank expects renewed inflows into exchange-traded funds (ETFs) and supportive macroeconomic conditions to drive the growth.

According to a report by Reuters, Citigroup's upward revisions to its targets amount to about 38% for both assets. At current prices of around $83,632 for Bitcoin and $2,686 for Ethereum, reaching these new targets would require gains of approximately 35% and 13%, respectively.

The bank expects investment advisers and brokerages to gradually increase Bitcoin's share in portfolios, generating $5 billion in inflows over the next 12 months. This is based on year-to-date flows into U.S. spot Bitcoin ETFs, which have seen a turn from net outflows of $5.8 billion as of July 13 to net inflows of $800 million by the end of September.

Citigroup also cited regulatory announcements from the U.S. Securities and Exchange Commission (SEC) as easing negative sentiment caused by the U.S. Senate's failure to advance the CLARITY Act on September 15. The bank further noted that the U.S. Treasury's move to buy back long-term bonds helped crypto emerge from months of stagnation.