Citigroup has cut its 12-month price targets for Bitcoin and Ethereum, citing delays in US legislation as pressure on demand.

Citigroup has cut its price target for BTC to $112,000 and for ETH to $3,175 following a stall in progress on cryptocurrency legislation, hindering opportunities for institutional investment and ETFs.

On March 17, 2569 at 15.23 p.m., Reuters news agency reported that Citigroup has lowered its price forecasts for Bitcoin and Ethereum over the next 12 months. They pointed out that the slow progress on US cryptocurrency legislation is limiting the chances that positive regulatory factors will boost demand for ETFs and attract institutional investors.

The report states that Progress on cryptocurrency market infrastructure legislation in the U.S. Senate remains stalled, with the chances of passing the Clarity Act diminishing due to disagreements over regulating stablecoins and a limited timeframe for approval by 2569.

Citigroup has lowered its Bitcoin price forecast to $112,000 from $143,000 and its Ethereum price forecast to $3,175 from $4,304.

Analysts say that while regulations are a key factor in the growth of the cryptocurrency market, the chances of passing legislation this year are decreasing.

however Citigroup Evaluate that In a potential economic recession, Bitcoin could plummet to $58,000 and Ethereum to $1,198. Conversely, in a positive scenario, if investment demand increases, Bitcoin could surge to $165,000 and Ethereum to $4,488.

Currently, Bitcoin is trading at around $74,298 and Ethereum is at approximately $2,345.

Citigroup also noted that Ethereum is sensitive to user activity, which has slowed recently, but trends in stablecoins and tokenization could help stimulate interest in the future.

From a political perspective, the likelihood of passing cryptocurrency legislation may decrease further if the Democratic Party gains more seats in the November midterm elections, due to internal disagreements within the party regarding regulations to accommodate cryptocurrencies.

Additionally, there are proposals to strengthen anti-money laundering measures and prohibit government officials from profiting from cryptocurrency businesses, which could affect the likelihood of President Donald Trump signing the legislation into law.

Citigroup believes that in the short term, Bitcoin is likely to trade within a range, with $70,000 being a key level for the market amid policy uncertainty.

refer : www.reuters.com

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