Citigroup Trims Bitcoin and Ether Forecasts Amid Slowing Crypto Legislation

Citigroup has revised its Bitcoin and Ether price forecasts downward, citing weaker ETF demand and slower U.S. crypto legislation as factors. In a note to clients on Tuesday, Citigroup reduced its 12-month Bitcoin target to $82,000 from $112,000 and lowered its Ether forecast to $2,240 from $3,175.

The bank's revised forecasts reflect declining ETF flows, which have fallen to around $3.3 billion for this year, down from an initial expectation of $10 billion in net inflows. Citi also notes that U.S. spot Bitcoin ETFs saw their worst month yet in June, with net outflows totaling $4.5 billion.

Citigroup attributes the decline in ETF flows to policy uncertainty and delays in Washington, particularly with regards to the CLARITY Act, which has faced ethics discussions and other issues. The bank warns that the lack of clear regulations could slow crypto adoption until a new market catalyst emerges.