Bitcoin Surges Past $119,000 as Citi Forecasts $181K Price Target by 2026

Citi has issued new cryptocurrency market predictions, forecasting that both Bitcoin and Ether will experience substantial gains over the next year. The bank now forecasts that bitcoin will reach $133,000 by the end of 2025, down slightly from its previous estimate of $135,000. Ether to reach $4,500 by the end of the year, revised upwards from $4,300

Citi has a 12-month target of $181,000 for bitcoin, assuming continued inflows through exchange-traded funds (ETFs). Ether's one-year prediction is $5,400. The bank highlights ETF flows, institutional demand, and regulatory tailwinds as the main drivers behind potential growth.

Despite the optimistic view, Citi says that a broad trading range remains possible. Bitcoin may reach as high as $156,000 under a bullish equity market scenario, but could plunge to $83,000 if recessionary pressures emerge. Ether's bull case is $6,100, but downside risk is there in a weaker macroeconomic environment.

Institutional Demand and the Growth of ETFs

EFTs are now a dominant force in the bitcoin market, and institutional adoption continues to grow. U.S. spot bitcoin ETFs currently hold more than $156 billion, with BlackRock's iShares Bitcoin Trust (IBIT) alone accounting for over $90 billion. These financial instruments have provided institutional investors with exposure to bitcoin under custodial safeguards with which they're familiar, fueling persistent inflows.

Corporate ownership has also risen dramatically. MicroStrategy currently owns approximately 3% of Bitcoin's total circulating supply, and more than 190 public companies hold approximately 977,818 BTC. This is a 375% increase in corporate acquisitions over the previous year. Analysts say this trend is similar to historical gold buying by corporations, with bitcoin serving as a hedge against inflation and low-yield Treasury assets.

Bitcoin Technical Analysis and Market Positioning

Bitcoin recently broke out of a key support level after a 6% rise from its bottom and is now trading near $119,500. Chart analysts (sources: technical analysis): bull flag breakout pattern, which is a technical indicator of a possible continuation of the uptrend. Based on the latest predictions from traders, short-term targets are expected to range between $140,000 and $145,000.

At the same time, analysts warn that Bitcoin could retest the $117,000 support level before resuming its upward movement. Liquidity maps highlight strong bid clusters in the $116,000 to $117,800 range, which could serve as stabilization points. A strong move above $120,000 would likely pave the way to new all-time highs above $150,000.

Market Integration and Regulatory Perspective

Bitcoin's rapidly growing market capitalization may have exceeded that of Amazon, fueled by ETF adoption and the integration of corporate treasuries. As of late September 2025, 335 entities held 3.75 million BTC, marking a major milestone in institutional involvement.

Regulatory scrutiny has increased accordingly. The SEC and FINRA are looking into more than 200 companies for compliance with securities laws regarding corporate bitcoin holdings. While these inquiries may have hindered adoption in the short term, long-term regulatory clarity could help enhance the asset's legitimacy.

The combination of demand and institutional inflows is likely to lead to favorable supply-demand conditions. Industry leaders, such as Larry Fink, the CEO of BlackRock, are calling bitcoin a "core asset class for the next decade" to solidify its place in the world of finance.

Also Read: Bitcoin Price Declines Before Key US Inflation Numbers: What’s Next?