Crypto Forecasts Trimmed Amid Legislative Delays

Citigroup has reduced its 12-month price forecasts for bitcoin and ethereum, citing slow progress in U.S. crypto legislation, impacting ETF-driven demand. The U.S. Senate has stalled the Clarity Act, leading to price adjustments and further adoption delays due to disagreements on stablecoin regulation.

Citigroup has adjusted its 12-month price outlook for leading cryptocurrencies Bitcoin and Ethereum, primarily due to sluggish advancements in U.S. crypto regulatory legislation. This delay has narrowed prospects for an immediate uptick in ETF-driven demand, a factor expected to enhance broader institutional engagement.

The proposed Clarity Act, designed to reshape the U.S. crypto market structure, faces significant hurdles in the Senate. With disagreements over stablecoin regulations, the act's passage appears uncertain, especially with the rising political uncertainty ahead of the U.S. mid-term elections.

Amidst the ongoing deadlock, Citigroup's revised forecast reflects both bearish and bullish scenarios, with Bitcoin and Ethereum showing potential price variations based on market conditions and regulatory developments. Analysts stress that without swift legislative action, adoption and market growth may remain hindered.

(With inputs from agencies.)