TLDRCitigroup’s Alex Saunders upgraded his BTC price target to $113,000, marking a significant increase from $82,000BTC delivered its most impressive quarterly gains since 2024, surpassing gold’s performanceThe cryptocurrency was hovering around $84,784 on Thursday with minimal daily movementMulti-year highs in Treasury yields are applying pressure to digital asset prices as Q4 beginsBull Theory data shows both BTC and ETH reached their peak monthly closes for 2026Citigroup has emerged as a prominent financial institution expressing bullish sentiment toward bitcoin’s trajectory. In a Thursday announcement, Citi’s Alex Saunders significantly elevated his baseline projection for bitcoin to $113,000, representing a substantial jump from his prior $82,000 estimate.Bitcoin (BTC) PriceAccording to Saunders, the revised forecast stems from three critical components of his analytical framework. These include trading dynamics, broader economic trends, and capital flows into exchange-traded products.The analyst emphasized concerns over currency debasement and fresh regulatory guidance from the SEC as catalysts that enabled cryptocurrency assets to reclaim important technical thresholds. This occurred despite legislative setbacks, including the stalled Clarity Act.ETF Capital Flows Drive Optimism at CitigroupA key factor in Saunders’ bullish revision centers on the resurgence of ETF capital inflows. He noted that institutional money began flowing back into bitcoin products once price action recovered above the 200-day moving average.The bank now anticipates approximately $5 billion in ETF inflows throughout the coming year under its baseline scenario. This represents a notable departure from earlier projections that anticipated stagnant flows.Bitcoin’s latest three-month stretch has overshadowed competing asset classes. The digital currency recorded its most robust quarterly advance since 2024, outperforming gold despite headwinds from rising Treasury rates and increasing commodity valuations.Market analyst Bull Theory provided context on the magnitude of these gains. “BREAKING: Bitcoin and Ethereum just printed their highest monthly close of 2026. $BTC surged +$25,800 and 44% in the past 3 months, delivering the best Q3 returns since 2017. $ETH surged 71.2% in the same period, its best quarter in history. Macro indicators confirm crypto has entered a new bull market,” the analyst noted.BREAKING: Bitcoin and Ethereum just printed their highest monthly close of 2026.$BTC surged +$25,800 and 44% in the past 3 months, delivering the best Q3 returns since 2017.$ETH surged 71.2% in the same period, its best quarter in history.Macro indicators confirm crypto has… pic.twitter.com/hY1Z195n2m— Bull Theory (@BullTheoryio) October 1, 2026However, bitcoin’s upward trajectory has decelerated entering the fourth quarter. The asset was trading near $84,784 at 06:30 ET Thursday, registering minimal price movement during the session.Bond Market Pressures Challenge Digital Asset RallyClimbing Treasury yields have emerged as a headwind for cryptocurrency valuations as October unfolds. Investors are positioning for potential additional monetary tightening from the Federal Reserve.Bitcoin had touched $85,600 during Wednesday’s session. This spike followed the release of U.S. PCE inflation figures that registered marginally below market forecasts.The cooler-than-expected inflation print sparked optimism that central bank officials might adopt a more gradual approach to rate increases. Yet those advances were partially eroded by Treasury yields climbing to their highest levels in several years during the same trading day.Competing investment themes have also diverted capital away from digital assets recently. Enthusiasm surrounding artificial intelligence developments, amplified by impressive Micron earnings results, channeled investor funds toward technology and semiconductor equities.Attention now turns to Friday’s release of the August nonfarm payrolls report from the United States. The employment figures may provide additional insight into the Federal Reserve’s monetary policy trajectory.Recent remarks from a Federal Reserve policymaker carried a dovish tone. This commentary dampened expectations for a potential rate increase at the October policy meeting.Alternative cryptocurrencies similarly experienced downward pressure Thursday. BNB, Ethereum, Cardano, XRP, and Dogecoin all registered losses in tandem with bitcoin’s subdued performance.The post Bitcoin (BTC) Price Forecast Jumps to $113,000 as Citigroup Upgrades Target Following Record Quarter appeared first on Blockonomi.