Citigroup Slashes Crypto Forecasts Amid Regulatory Uncertainty

Citigroup has revised its cryptocurrency forecasts downwards in response to weaker network activity and slower regulatory progress in the US. The bank lowered its target prices for Bitcoin and Ethereum, citing reduced expectations for exchange-traded fund inflows and declining on-chain usage.

In a note, Citigroup pointed out that institutional flows through ETFs remain the main source of price support for cryptocurrencies. However, the bank's revised forecast reflects a more cautious outlook due to the slow pace of regulatory progress in the US.