Catenaa, Saturday, March 21, 2026- Citigroup lowered its 12-month price target for Bitcoin to $112,000 from $143,000, citing delays in US crypto legislation that could slow institutional investment flows.
The bank also reduced its forecast for Ethereum to $3,175 from $4,304, reflecting weaker expectations for exchange-traded fund inflows and broader market uncertainty.
Analysts said the revisions stem from stalled progress on the CLARITY Act, a bill designed to define regulatory oversight for digital assets. The legislation passed the House in 2025 but has yet to advance in the Senate.
Citigroup strategists said the lack of regulatory clarity is limiting institutional participation, with many firms maintaining cautious exposure to crypto assets.
Without clear rules defining oversight between agencies, large financial advisers and investment platforms have been slow to expand allocations.
Despite strong total assets under management in spot crypto ETFs, recent inflows have slowed. Citigroup reduced its forecast for Bitcoin ETF inflows to $10 billion and Ethereum to $2.5 billion.
Analysts said earlier optimism around rapid institutional adoption has faded as policy uncertainty
Citigroup outlined a range of possible outcomes for Bitcoin prices over the next year. A bullish scenario could see prices reach $165,000 if retail demand strengthens and market sentiment improves.
In a weaker scenario, prices could fall to $58,000 if economic conditions deteriorate or regulatory progress stalls further.
Recent trading suggests consolidation below key resistance levels, with lower price ranges acting as support.
Some large asset managers continue to accumulate crypto assets despite the cautious outlook. Analysts said this reflects long-term confidence in digital assets even as short-term catalysts weaken.
Institutional custody and ETF markets remain active, though growth has slowed compared with earlier projections.
Broader economic conditions are also influencing crypto markets. Interest rate expectations, inflation concerns and global tensions have contributed to volatility.
Outside the United States, crypto investment products continue to expand, with other regions advancing regulatory frameworks and attracting capital flows.
This divergence has added pressure on US policymakers to finalize legislation and maintain
Citigroup said future price movements will depend heavily on regulatory progress and macroeconomic trends. Analysts expect continued volatility until clearer policy direction emerges.
While long-term adoption remains intact, near-term expectations have been adjusted to reflect slower institutional momentum.
