Citigroup cut its 12-month price forecasts for Bitcoin and Ether in July, citing weaker investor demand, slowing exchange-traded fund (ETF) inflows and delays in US crypto legislation. The bank lowered its Bitcoin target to $82,000 from $112,000 and its Ether forecast to $2,240 from $3,175 as of July 1, 2026.
Three months later, Citi reversed course. The bank has raised its 12-month Bitcoin target to $113,000 and Ether to $3,028, pointing to stronger crypto activity, a supportive macroeconomic backdrop and a return of ETF inflows. Citi now expects about $5 billion of crypto inflows over the next 12 months, with financial advisers and brokerages gradually increasing their Bitcoin allocations.
The lift comes after a strong recovery in crypto markets. Bitcoin and Ether have gained nearly 40% and 68%, respectively, over the past three months, while Bitcoin has climbed about 40% from its July lows.
Citi said a softer dollar and improving market conditions helped revive momentum, although the failure of the US Senate to advance the CLARITY Act has narrowed the path toward crypto market-structure legislation.
Is the next Bitcoin buyer sitting inside wealth-management firms?
Citi’s prediction revealed the assumption that financial advisers will become a larger source of Bitcoin demand.
That transition is already visible. A Bitwise and VettaFi survey of 299 US financial advisers found that 32% had allocated to crypto for client accounts in 2025, up from 22% in 2024. The share who said they could buy crypto for clients also rose to 42% from 35%.
Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, said in March that roughly 80% of the crypto ETF activity the firm was seeing came through its self-directed business rather than adviser-managed accounts. She described adviser adoption as still being in its early stages as wealth managers work out how digital assets fit into portfolio construction. That creates a different growth pool from the investors who bought into Bitcoin ETFs when they launched.
If advisers begin adding even small allocations across client portfolios, demand could become less dependent on individual traders. The significance of Citi’s forecast, therefore, is the possibility that Bitcoin gradually becomes a portfolio decision made by the people managing other people’s money.
Also Read: Coinbase CEO Calls for Changes to Accredited Investor Rules in the US
Hedge funds reduce Bitcoin holdings as advisers hold steady
Hedge funds and financial advisers are moving in different directions on Bitcoin. CoinShares found that hedge fund holdings of US spot Bitcoin ETFs fell 39% in the first quarter of 2026, while advisers reduced their holdings by only 6%. Brokerages saw an even larger decline of 53%, helping push total professional holdings down 17%, from 313,000 BTC to 261,000 BTC.
The longer-term data shows why advisers stand out. Advisers held about 150,300 BTC at the end of the quarter, 20% more than a year earlier. Banks also increased their holdings to about 15,200 BTC, more than four times their year-earlier level. Citigroup appeared in the filings for the first time with a 97 BTC position.
Hedge funds can quickly buy or sell Bitcoin when prices or market conditions change. Advisers tend to hold Bitcoin for longer because they are buying it for client portfolios. The bank expects financial advisers and brokerages to increase their Bitcoin allocations over the next 12 months, which could make client portfolios a bigger source of Bitcoin demand even as some short-term investors reduce their holdings.
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