Citigroup has raised its 12-month price targets for bitcoin and ether, citing renewed demand for crypto ETFs and a more favorable macroeconomic backdrop in a research note published Wednesday.

Citi increased its bitcoin forecast to $113,000 from $82,000 and lifted its ether target to $3,028 from $2,240. At current market levels, the new targets imply upside of roughly 35% for BTC and 12% for ETH.

The bank expects capital flowing into crypto products to become “slower but stickier” as advisers and brokerage firms gradually expand their bitcoin allocations. Citi estimates that these products could attract about $5 billion over the next 12 months.

The outlook for U.S. spot bitcoin ETFs has improved significantly since mid-July. The funds were sitting on $5.8 billion in net year-to-date outflows as of July 13, but subsequent inflows pushed the 2026 total into positive territory, reaching approximately $800 million by late September.

Citi also said recent SEC rulemaking helped soften the market impact of the U.S. Senate’s Sept. 15 failure to advance the CLARITY Act. The bank referred to the regulatory developments as a “temporary but meaningful positive.”

Citi said that, at this point in the electoral cycle, greater clarity through agency rulemaking could partly compensate for the absence of a lasting CLARITY Act. However, it warned that a change in the U.S. administration in 2028 could result in some agency rules being reversed, although that risk falls beyond its current forecast horizon.

Bitcoin remained resilient after the Senate vote, gaining more than 10% by the end of September despite the legislative setback.

The bank also highlighted U.S. Treasury purchases of longer-dated bonds as another factor supporting crypto-market momentum. Citi said the purchases helped cryptocurrencies emerge from a months-long period of underperformance compared with other risk assets.

UPDATE (Oct. 1, 12:00 UTC): Reuters attributions removed and additional details from Citi’s note added.