Citi slashes Bitcoin target by $31,000 despite rising prices as Washington delays stall crypto breakout

Citigroup has significantly reduced its price targets for both Bitcoin and Ethereum, lowering its Bitcoin forecast to $112,000 from $143,000 and Ethereum to $3,175 from $4,304. This revision is attributed to delays in US legislative progress regarding cryptocurrency regulation, which Citi believes will impact ETF demand and broader adoption. While the cuts are substantial – 21.7% for Bitcoin and 26.2% for Ethereum – Citi remains optimistic about the potential for growth, with the new targets still representing a 51.8% and 36.8% upside from current market prices, respectively. However, the bank cautions that the path to these targets may be slower and less certain than previously anticipated. Recent market gains for both cryptocurrencies, with Bitcoin around $74,000 and Ethereum near $2,300, haven't altered Citi’s assessment, as the primary concern remains the lack of regulatory clarity and the potential impact on institutional investment. The bank emphasizes that the market can still rally, but the upside potential is now more limited and contingent on policy developments and sustained demand.

(Source：CryptoSlate)