Citigroup Trims Bitcoin, Ethereum Forecasts Amid US Crypto Legislation Delays

Citigroup Adjusts Crypto Forecasts Amid Stalled US Legislation

Citigroup has revised its price forecasts for bitcoin and Ethereum in light of slowed progress on US crypto legislation. The bank's predictions reflect the impact of potential delays on regulatory catalysts that drive adoption and investment flows.

The Wall Street brokerage reduced its 12-month targets to $112,000 for bitcoin and $3,175 for Ethereum from previous estimates of $143,000 and $4,304 respectively. Citi strategist Alex Saunders noted that while macroeconomic conditions may further influence prices, the narrowing window of opportunity for US legislation this year is a significant factor in the adjustments.

Progress on the Clarity Act, a key piece of crypto market legislation, has slowed due to disagreements over stablecoin rules and a tightening timeline for approval. Analysts believe that if Democrats gain seats in Congress in the November midterm elections, the chances of passing a crypto bill could decline further.