Citigroup's Cryptocurrency Market Outlook: Regulatory Uncertainty Looms

Citigroup's revised cryptocurrency market outlook reflects a significant shift in regulatory expectations. The bank's forecast includes lower price targets for bitcoin and ethereum due to diminished prospects for U.S. crypto legislation passing this year.

The Digital Asset Market Clarity Act, which cleared the House in July 2025, remains stalled in the Senate due to debate over stablecoin rewards. Banking industry lobbying has effectively blocked progress, leaving the bill's fate uncertain.

Citigroup has lowered its price targets for bitcoin and ethereum to $112,000 and $3,175 respectively, down from previous estimates of $143,000 and $4,304. The reduced confidence in regulatory breakthroughs is also reflected in the bank's estimate of ETF inflows, which are now projected at $10 billion for bitcoin and $2.5 billion for ether over the next year.

Circle and Bullish have been identified as top picks by Citigroup, with expectations that they will benefit from increased supply and demand if the CLARITY Act advances. Circle's stablecoin growth is expected to continue, while Bullish is poised to capitalize on growing institutional demand for trading services.