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Citi analysts set bitcoin bull case at $189,000 in 2026

Citi’s base case 12-month forecast for bitcoin is $143,000, which is well above the asset’s current all-time high.

Bitcoin is entering its final week of the year down 30% from its October 6 all-time high. As for bitcoin ETFs, they registered $1.08 billion in outflows in December, the third-largest monthly exodus, according to SoSoValue.

In their 2026 digital assets outlook, Citi analysts set a 12-month base case assumption for bitcoin at $143,000, driven mainly by “revived ETF demand.” They set a bull case assumption of $189,000, and a bear case, premised on “recessionary macro factors,” of $78,000.

“That said, bitcoin trades at around our activity-based estimates, so we would expect range trading in the $80k-$100k range until we see legislative progress, possibly in Q2 of next year. Volatility remains, and pre-election levels of around $70k would be an important psychological level,” the analysts wrote.

Meanwhile, market-implied probabilities derived from event contracts show that traders believe there’s a 12% chance bitcoin hits $150,000 before May 2026 and a 10% chance it reaches that before April.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

Nic Puckrin, cofounder of Coin Bureau, told Sherwood News that while the long-term case for bitcoin hasn’t changed, in the short term, there are potential catalysts for further pain on the horizon.

He said that in the early weeks of 2026, several factors could weigh heavily on bitcoin, including worries over the debt ceiling, another potential shutdown, and uncertainty over the CLARITY Act.

If Kevin Hassett is appointed as the next Fed chair, this could buoy the price briefly, “but if we have learnt anything this year, it’s that one positive announcement isn’t enough to reignite the crypto rally,” Puckrin continued. 

“I still see bitcoin hitting a new all-time high in 2026, but it likely won’t be in January, and it may well retrace lower as market jitters continue, with around $82,000 acting as a strong support level from here,” he said.

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$1.2B

XRP ETFs have now crossed $1 billion in assets since the funds launched, according to SoSoValue, which shows total assets of $1.18 billion.

In September, the SEC approved generic listing standards, which paved the way for speedier listings and opened the floodgates for these products, and shortly after, Rex-Osprey launched the first spot XRP ETF available in the US.

Canary followed suit in November, launching an ETF trading on the Nasdaq under the ticker XRPC, which saw a record $58.5 million in trading volume on its first day. It’s the largest XRP ETF in the US, with $342 million in assets.

Grayscale, Bitwise, and Franklin Templeton also launched their own XRP ETFs in November. On December 11, 21Shares joined the XRP fund party.

It’s a noteworthy green shoot in the crypto space, as bitcoin and its ETFs have struggled, and XRP itself is down nearly 15% over the past month.

Jake Hanley, managing director and senior portfolio specialist at Teucrium Investment Advisors — which launched the first-ever XRP-based ETF in April, the 2x Long Daily XRP ETF — told Sherwood News that he is not surprised to see this level of interest in the XRP ETFs.

“We have long held that XRP and the Ripple ecosystem present a unique investment case among crypto assets. Crossing the $1 billion mark is yet another signal of the significant vote of confidence investors have in this increasingly important asset and ecosystem,” Hanley said.

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New bitcoin AfterDark ETF will be bitcoin at night, Treasurys by day

Tidal Trust II submitted form N-1A with the SEC to register a bitcoin ETF designed to systemically capture the cryptocurrency’s overnight return profile, a time window that delivered a significant portion of bitcoin’s upside last year.

The Nicholas Bitcoin and Treasuries AfterDark ETF provides long bitcoin exposure during US overnight hours, from the closing bell until the following morning’s market open, when the fund intends to unwind its positions, according to a document filed with the SEC on Tuesday. 

To gain that exposure, the ETF may use a number of methods, including bitcoin futures contracts, US-listed ETFs, or exchange-traded options on such bitcoin underlying funds. When the market is open and daytime trading is active, the fund’s portfolio will consist of US Treasury securities and other cash equivalents. 

In 2024, most of bitcoin’s gains occurred after-hours, senior Bloomberg ETF analyst Eric Balchunas reported:

The AfterDark ETF filing comes as bitcoin crossed $94,000 on Tuesday, rising 4.5% in the last 24 hours. Even though spot bitcoin ETFs saw nearly $60.5 million in outflows on Monday, the investment vehicles have a cumulative net inflow of $57.6 billion, per SoSoValue.

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.