A major Wall Street financial institution has dramatically reduced its cryptocurrency price predictions as federal lawmakers continue to struggle with digital asset regulations.
Citigroup announced Monday it was slashing its one-year Bitcoin projection to $112,000 from a previous estimate of $143,000. The bank also cut its Ethereum forecast to $3,175 from $4,304, citing delays in Washington that could limit institutional investment growth.
The revised predictions come as cryptocurrency market legislation remains gridlocked in the U.S. Senate. The proposed Clarity Act faces diminishing prospects for approval, with lawmakers divided over stablecoin regulations and time running out before 2026.
“Regulatory catalysts will drive further adoption and flows but the window of opportunity for U.S. legislation this year is narrowing,” Citi strategist Alex Saunders wrote in Monday’s research note.
The banking giant outlined multiple scenarios for digital asset prices. In a worst-case economic downturn, Bitcoin could fall to $58,000 while Ethereum might drop to $1,198. However, under optimistic conditions with strong investor demand, Bitcoin could soar to $165,000 and Ethereum to $4,488.
As of Tuesday morning, Bitcoin was trading around $74,298 while Ethereum hovered near $2,346.
“ETH will be especially sensitive to user activity metrics, which have been weak recently, but stablecoin and tokenization trends may increase interest and usage,” Citigroup analysts noted.
Political dynamics could further complicate legislative efforts. If Democrats expand their Congressional representation in November’s midterm elections, crypto legislation faces even steeper hurdles since Democratic representatives remain more skeptical about overhauling federal cryptocurrency rules.
Any crypto bill requires backing from at least seven Senate Democrats to advance. Some party members want provisions preventing elected officials from profiting through cryptocurrency ventures – a concern heightened by scrutiny of the Trump family’s World Liberty Financial initiative. Such requirements could make President Trump less likely to sign the legislation.
“Bitcoin is likely to range-trade anticipating legislative news flow with (about) $70,000 an important level representing the pre-U.S. election price,” Citi analysts stated.
Additional lawmakers are pushing for stronger anti-money laundering provisions in any final bill, adding another layer of complexity to negotiations.
