Citigroup cuts Bitcoin, Ethereum targets on US regulation

Citigroup cut its 12-month targets for Bitcoin to $112,000 and Ethereum to $3,175, citing US regulatory delays and legislative uncertainty as key obstacles to institutional adoption.

Citigroup has lowered its 12-month price targets for Bitcoin and Ethereum, citing ongoing US regulatory uncertainty and stalled crypto legislation. The new target for Bitcoin is $112,000, down from $143,000, while Ethereum’s target is now $3,175, reduced from $4,304. Analysts clarify that these changes are not due to a negative reassessment of crypto fundamentals, but rather reflect the slow progress of legislative efforts like the CLARITY Act in Congress. The lack of clear regulatory frameworks is seen as a major barrier to institutional adoption and ETF-driven demand. Citigroup notes that Bitcoin remains below $90,000 and expects consolidation in the near term, as the market questions previously anticipated bullish catalysts. The bank also warns of potential downside if macroeconomic conditions deteriorate, but sees significant upside if regulatory clarity improves and investor demand increases.