Wall Street analysts are beginning to reverse their stance. In a research note dated Oct. 1, 2026, Citigroup officially raised its 12-month price targets for the two largest crypto assets: Bitcoin was upgraded from $82,000 to $113,000, while Ethereum was lifted from $2,240 to $3,028.
The new target represents roughly a 35% increase from Citi’s previous projection. The upward revision follows earlier cuts by the bank from early 2026 levels, which once stood at $143,000 for BTC and $4,304 for ETH. At the time the research was released, CoinGecko data showed Bitcoin trading around $83,900 and Ethereum at $2,700.
The ETF Engine Heats Up Again
A multi-billion-dollar deficit was recently wiped off the ledger. As of July 13, U.S. spot Bitcoin ETFs had suffered $5.8 billion in net outflows for 2026. That deficit has now flipped into an $800 million year-to-date surplus by the close of September.
Inflows peaked during the week of Sept. 21-25, when ETF products logged five consecutive positive sessions and attracted a total of $2.39 billion. The revival of institutional appetite is closely tied to macroeconomic maneuvers, specifically the U.S. Treasury’s announcement of long-term bond buybacks in August. That policy weakened the dollar and promptly channeled $5.3 billion into Bitcoin ETF products.
The U.S. bond market has indeed been heating up. The 10-year Treasury yield briefly touched a 24-year high of 5.362% before easing slightly to 5.282%. Citi forecasts that future crypto fund flows will be slower but steady, projecting $5 billion in fresh capital over the next 12 months.
Prices Defy Political Headwinds
Institutional capital flows have tracked closely with asset price performance. Throughout the third quarter (Q3) of 2026, Bitcoin posted a 42.7% gain - its strongest quarterly showing since Q1 2024’s 68.7% surge. Ethereum also rallied 70.8%, logging its best quarterly jump since Q1 2021, when it climbed 160.7%.
The upward price trajectory persisted despite a recent political setback for the crypto industry. The Clarity Act failed in the U.S. Senate on Sept. 15 after securing only 49 votes in favor to 50 against - falling short of the 60-vote threshold required to proceed to formal debate. Citi noted that while the failure narrows the path for crypto market structure legislation, subsequent regulatory announcements from the SEC effectively cushioned the negative sentiment.
Instead, the market responded to the regulatory developments with accumulation. Bitcoin’s price climbed more than 10% in late September following the Senate vote. The three-month rally of 40% for Bitcoin and 68% for Ethereum managed to pare year-to-date (ytd) losses down to just minus 4% and 9%, respectively.
For traders eyeing new all-time highs, there is still room to climb. Even with a 35% bump, Citi analysts’ new $113,000 target still sits roughly 10% below Bitcoin’s all-time high (ATH) of $126,200 set in October 2025.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
