Citigroup Trims Bitcoin, Ether Forecasts Amid US Crypto Legislation Stalemate

Citigroup has made adjustments to its 12-month price targets for bitcoin and ether amidst the ongoing uncertainty surrounding US crypto legislation. The Wall Street brokerage lowered its forecasts, citing regulatory catalysts expected to drive demand and adoption.

According to Alex Saunders, a Citi strategist, 'regulatory catalysts will drive further adoption and flows but the window of opportunity for U.S. legislation this year is narrowing.'

Citigroup's updated price projections put bitcoin at $112,000 and ether at $3,175 in 12 months, down from its previous estimates of $143,000 and $4,304 respectively.

The brokerage also outlined potential scenarios for the prices of both cryptocurrencies under different macroeconomic conditions. In a recessionary scenario, bitcoin could drop to $58,000 and ether to $1,198, while in a bull case driven by strong end-investor demand, bitcoin could reach $165,000 and ether at $4,488.

The legislative process has stalled due to disagreements on stablecoin rules and the shrinking window for approval before the end of 2026. If Democrats gain seats in the November mid-term elections, chances for passing a crypto bill would further decline as Democratic lawmakers are more divided on overhauling federal rules to accommodate cryptocurrencies.