Citigroup Lowers One-Year Price Targets for Bitcoin and Ethereum Amid Regulatory Delays

Citigroup has made significant changes to its one-year price forecasts for Bitcoin and Ethereum in response to slower US legislative progress. According to a recent report, the bank has cut its target for Bitcoin from $143,000 to $112,000, representing a decline of 21.7%. The revised target for Ethereum is now $3,175, down from an earlier estimate of $4,304.

The move reflects Citigroup's concerns about the pace of regulatory developments in Washington. As previously reported, the Senate Banking Committee had announced a digital-asset market structure markup for January 15, but it was postponed due to ongoing negotiations. The delayed legislation is seen as a key factor contributing to Citigroup's decision to lower its price targets.

The new forecasts still suggest that both cryptocurrencies have significant upside potential over the next year, with implied returns of around 52% for Bitcoin and 37% for Ethereum based on current market prices. However, the revised targets reflect a more cautious outlook, acknowledging that regulatory delays may impact adoption rates and ETF demand.