Despite a recent resurgence in prices, Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization, are not expected to achieve new all-time highs this year, according to analysts at Citigroup.
The company significantly revised its forecasts for both cryptocurrencies on Tuesday, reflecting concerns about the slow pace of legislative progress in the United States, which limits the potential for regulatory catalysts that could drive increased demand from institutional investors and exchange-traded funds (ETFs).
Bitcoin And Ethereum Price Targets Revised DownwardThis suggests that, based on current trade prices, Bitcoin is predicted to increase by nearly 50% in the remaining months of the year from $74,360. Ethereum, on the other hand, would see a nearly 62% increase in price from its present level of $2,314 per token over the course of the year.
The report further highlights that, under a recessionary economic climate, Bitcoin could see its price dip to as low as $58,000, while Ethereum might fall to around $1,198.
Tight Timeline For Crypto Legislation ProgressCitigroup analysts suggest that Bitcoin is likely to trade within a range while awaiting developments in the legislative arena, with $70,000 acting as a significant price point as the US election approaches.
While negotiations in Washington D.C focus on resolving the stablecoin rewards issue, Thorn highlighted that additional challenges could emerge. These challenges may include discussions regarding decentralized finance (DeFi), investor protections, and broader ethical considerations in the digital asset sector.
Featured image from OpenArt, chart from TradingView.com
