The ongoing U.S. government shutdown has not shaken Wall Street’s outlook on crypto, but it has prompted Citigroup to adjust its year-end targets for the market’s two largest assets.
In its latest report, Citi raised its forecast for Ethereum to $4,500, up from $4,300, pointing to growing demand from exchange-traded funds and digital asset treasury strategies.
The bank suggested ETH could replicate the enthusiasm that Bitcoin attracted when similar financial products were launched.
At the same time, Citi cut its year-end target for Bitcoin to $133,000 from $135,000.
Analysts cited macroeconomic headwinds, including dollar strength and sliding gold prices, which they said could dampen Bitcoin’s safe-haven appeal even as the asset remains near historic highs.
Fed Cuts Still Expected
Citi also noted that the shutdown may delay key economic data releases but stressed that it should not alter the Federal Reserve’s path. Its economists still expect rate cuts of 25 basis points in both October and December, in line with the central bank’s latest dot plot.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/citi-revises-bitcoin-and-ethereum-forecasts-amid-u-s-shutdown/