Bitcoin Below $84,000 as High Treasury Yields Weigh -- Update

Bitcoin (BTC) rose 1.24% to $84,776.95 after Citigroup raised its 12-month price target to $113,000 from $82,000, citing ETF inflows and macro conditions. Analysts note institutional validation boosted sentiment. Bitcoin's short-term direction is sensitive to macro data, with key resistance at $85,600.

Bitcoin posted its best quarter since 2024, rising 43% to $83,621, driven by $6.34 billion in US spot ETF inflows. Despite this, it remains 33.7% below its all-time high. Analysts note mixed signals, with support near $80,000 and resistance at $87,000–$88,000. Citi raised its 12-month target to $113,000, citing ETF demand and macroeconomic factors.

U.S. spot bitcoin ETFs saw $6.34 billion in net inflows in Q3 2026, the strongest quarter of the year, reversing $5 billion in Q2 outflows. Bitcoin gained 42.71% over the period. September inflows were $2.65 billion, but the quarter ended with $148.7 million in outflows on September 30, ending a nine-day inflow streak. Fidelity's FBTC led outflows, followed by Bitwise's BITB and BlackRock's IBIT.

Citigroup raised its 12-month price targets for Bitcoin to $113,000 and Ethereum to $3,028, citing expected crypto inflows and institutional demand recovery. The bank forecasts $5 billion in crypto inflows over the next year, supported by ETF demand and improving financial conditions. Bitcoin and Ethereum have seen significant rallies, reducing their year-to-date losses.

Citigroup raised its 12-month price target for bitcoin to $113,000 from $82,000, citing ETF inflows and supportive economic conditions. Ether's target was also increased to $3,028 from $2,240. The bank forecasts $5 billion in inflows into crypto investment products over the next year. Bitcoin and ether have gained 40% and 68% over three months, respectively, cutting their yearly losses. The Senate's rejection of the Clarity Act and Treasury bond buybacks have also influenced market sentiment.

The IRS extended until December 31, 2026, the deadline for crypto investors to choose specific coins for tax purposes. The default is FIFO, but investors can opt for specific identification to minimize gains or maximize losses. Bitcoin (BTC) and Ethereum (ETH) have seen significant price declines, affecting tax outcomes. Notice 2026-20 allows standing orders for brokers until the end of 2026.