Citigroup slashes crypto price targets as stalled United States legislation threatens institutional market adoption

Citigroup cuts Bitcoin and Ether price targets as Senate gridlock on crypto laws limits market growth. See why regulatory delays are cooling institutional demand.

By: AXL Media

Published: Mar 17, 2026, 4:41 AM EDT

Source: The information in this article was sourced from CNA

Wall Street Moderates Crypto Growth Expectations Amid Legislative Deadlock

Citigroup has formally retracted its more aggressive price targets for the digital asset market, signaling a shift toward caution as federal regulatory progress falters. According to strategist Alex Saunders, the brokerage now projects Bitcoin to reach 112,000 dollars, a significant drop from the previous 143,000 dollar estimate, while Ethereum has been adjusted downward to 3,175 dollars. This reassessment stems from the stalled momentum of the Clarity Act, which many investors viewed as the primary catalyst for deep institutional integration. Without a clear legal framework, the immediate path for sustained capital inflows through exchange-traded funds appears increasingly obstructed by bureaucratic delays in Washington.

The Shifting Odds of Success for Federal Market Overhauls

The legislative landscape for digital assets has become increasingly precarious as the 2026 calendar progresses. Current analysis suggests that the chances for a comprehensive market-structure bill are declining, primarily due to fundamental disagreements over stablecoin governance. To secure passage, the proposed legislation requires the backing of at least seven Democratic senators, a threshold that remains elusive. According to Citi, the upcoming November midterm elections represent a critical pivot point, if Democratic lawmakers gain further seats, the appetite for a regulatory overhaul tailored to the crypto industry may diminish further, given the party’s internal divisions on the matter.

Strategic Political Hurdles and the Presidential Signature Risk

Beyond simple partisan math, specific policy disputes regarding ethics and transparency have complicated the path to law. Some lawmakers are now insisting on provisions that would prohibit elected officials from deriving personal profit from cryptocurrency enterprises. This push has gained significant momentum following intense public scrutiny of the World Liberty Financial project, a venture associated with the Trump family. Financial analysts suggest that if these restrictive clauses remain in the final text, it could create a scenario where President Donald Trump refuses to sign the bill, effectively neutralizing months of bipartisan negotiation and leaving the industry in a continued state of legal ambiguity.