Citigroup Raises Bitcoin Forecast to $113,000 Amid ETF Inflows and Treasury Support

Citigroup has raised its 12-month forecast for Bitcoin from $82,000 to $113,000 and for Ether from $2,240 to $3,028, according to a report from Reuters.

The financial services giant expects slow but steady inflows into exchange-traded funds (ETFs) as advisers and brokerages favor gradual increases in Bitcoin allocations, forecasting $5 billion of inflow over the next 12 months.

U.S. spot Bitcoin ETFs had experienced year-to-date net outflows of $5.8 billion as of July 13, but have since reversed with net inflows reaching $800 million as of late September.

Citi cites the U.S. Treasury's move to buy back longer-dated bonds as a contributing factor to the revival of momentum in the cryptocurrency market.