Bitcoin Could Hit $143,000 and Ethereum $4,304 in 2026: Citi Bank

Highlights:

• Citi predicts Bitcoin $143K and Ethereum $4,304 with more investor interest.
• Analysts highlight easing regulations and rising institutional interest supporting digital asset growth.
• Other experts also predict that Bitcoin and Ethereum could achieve new all-time highs in 2026.

On Thursday, Citigroup released its 12-month forecasts for Bitcoin and Ethereum. The bank highlighted that easing regulatory pressures and rising institutional interest could support growth. It said clearer policies may attract new capital, which would help the market recover.

At the time of the report, Bitcoin was trading near $88,654. Citi set a 12-month target of $143,000, showing potential gains of about 61%. Ethereum also has a positive outlook. Its target is $4,304, compared to $2,986 now, suggesting almost 44% upside. 

Citi’s analysts highlighted that Bitcoin’s growth depends on continued investor adoption. They anticipate $15 billion in ETF inflows could lift token prices. The report was authored by Alex Saunders, head of global quantitative macro strategy at Citi.

Citi Sees Recovery Potential for Bitcoin and Ethereum

The bank said these forecasts show its belief that digital assets could rebound after recent declines, and growing confidence among investors and investment flows will support this recovery. Citi stated that ongoing regulatory changes are likely to influence market behavior in the coming months. Authorities seem to be creating rules specifically for digital assets, and several enforcement actions and lawsuits against major crypto platforms have been withdrawn.

JUST IN: 🇺🇸 $2.6 trillion Citi says Bitcoin could hit $189,000 in the next 12 months 🚀 pic.twitter.com/CgGEZ1XKB1

— Bitcoin Magazine (@BitcoinMagazine) December 19, 2025

Analysts believe that clearer regulations will support steadier growth for both BTC and Ethereum. Even so, volatility continues to affect market sentiment. Bitcoin dropped to multi-month lows in November, partly due to concerns over high-tech stock valuations.

Citi Outlines Bull and Bear Scenarios

Citi said current prices better reflect user activity after adjustments following the October pullback. In a bullish scenario, Bitcoin could reach $189,000, while Ethereum might rise to $5,132 within a year. In a bearish case, Bitcoin could fall to $78,000, and Ethereum to $1,270.

The report follows analysis from Bernstein, which suggested that Bitcoin has moved beyond its traditional four-year cycle into a longer bull market. The brokerage noted that even after a 30% correction, ETF outflows accounted for less than 5% of total holdings. Bernstein raised its 2026 Bitcoin target to $150,000, expecting the current cycle to peak near $200,000 in 2027. Looking further ahead, the firm projected that Bitcoin could reach around $1 million by 2033. The updated outlook reflects a change in the market timeline rather than a shift in long-term potential.

Bernstein: "In view of recent market correction, we believe, the Bitcoin cycle has broken the 4-year pattern (cycle peaking every 4 years) and is now in an elongated bull-cycle with more sticky institutional buying offsetting any retail panic selling.
Despite a ~30% Bitcoin…

— matthew sigel, recovering CFA (@matthew_sigel) December 8, 2025

Crypto ETF issuer Bitwise also shared predictions for 2026, forecasting new all-time highs for Bitcoin, Ethereum, and Solana. The firm cited ongoing institutional activity, market trends, and regulatory clarity as key factors supporting growth. Bitwise expects Bitcoin to surpass its traditional four-year pattern and reach new peaks in 2026. Factors like the upcoming BTC halving, milder boom-bust cycles, and shifts in interest rates could drive prices higher.

Bitwise expects ETFs to absorb more than 100% of the new supply, with 166,000 BTC, 960,000 ETH, and 23 million SOL entering the market next year. The firm also suggested crypto equities could outperform traditional technology stocks. 

BONUS PREDICTION: Bitcoin’s correlation to stocks will fall.

Many believe that bitcoin is highly correlated to the stock market, but data suggests otherwise.

Using rolling 30-day correlations, bitcoin’s correlation with the S&P 500 has rarely topped 0.50, the usual statistical… pic.twitter.com/1VUAiaWb8k

— Bitwise (@BitwiseInvest) December 17, 2025