Citi Lowers BTC, ETH Forecasts Amid US Bill Stall

Citigroup Revises Crypto Price Targets

Citigroup has lowered its 12-month price forecasts for Bitcoin and Ether. The financial institution cited slow progress in United States crypto market legislation as a primary reason for the adjustment. This delay narrows the window for potential regulatory catalysts that could drive institutional adoption and demand through ETFs.

Legislative Headwinds in the U.S.

Progress on crucial U.S. crypto market-structure legislation has reportedly stalled within the Senate. Disagreements over stablecoin rules have decreased the likelihood of the Clarity Act's passage. This legislative uncertainty directly impacts investor sentiment and the potential for new capital inflows into the digital asset market.

Impact on Price Forecasts

The Wall Street firm reduced its 12-month Bitcoin price forecast to $112,000 from a previous $143,000. Similarly, the estimate for Ethereum was cut to $3,175 from $4,304. Citi strategist Alex Saunders noted the narrowing opportunity for U.S. legislation this year. The bank also outlined a recessionary scenario where Bitcoin could drop to $58,000, and a bull case where it could reach $165,000.

Summary and Outlook

The outlook for Bitcoin and Ether remains heavily dependent on regulatory developments. Citi suggests Bitcoin will likely trade in a range around the $70,000 level while the market awaits legislative news. The upcoming U.S. elections are another critical factor that could further influence the direction of crypto-related bills.

FAQ

Q: Why did Citi lower its Bitcoin and Ether forecasts?
A: The forecasts were lowered due to stalled progress on U.S. crypto legislation, which delays regulatory catalysts expected to boost institutional adoption.

Q: What are Citi's new 12-month price targets?
A: The new target for Bitcoin is $112,000, and the target for Ether is $3,175.

Q: What is the key factor driving crypto prices according to Citi?
A: Regulatory catalysts and legislative news flow are the primary drivers for further crypto adoption and price movement.

Source: Investing.com