Citigroup Lowers Bitcoin and Ethereum Price Targets Amid Regulatory Uncertainty

Citigroup has issued a revised forecast for the prices of Bitcoin (BTC) and Ethereum (ETH), reflecting its concerns about the slow pace of U.S. cryptocurrency legislation. The investment bank's analysts pointed to the stalled Clarity Act as a major factor contributing to their lower price targets.

In its latest report, Citigroup cut its 12-month price target for BTC from $143,000 to $112,000 and ETH's target from $4,304 to $3,175. The bank cited several reasons for this downward revision, including the uncertainty surrounding U.S. crypto legislation and weak network activity.

Citigroup emphasized that regulatory clarity is crucial for institutional investors, who are hesitant to deploy significant capital into the market due to the lack of clear rules for crypto assets. The investment bank noted that the odds of digital asset legislation passing this year have slipped to approximately 60%, according to market-implied probabilities.