The US government shutdown after a 7-year hiatus continues to be talked about in the Bitcoin and cryptocurrency markets.
While the impact of the shutdown is expected to be minimal, Citigroup revised its year-end expectations for Bitcoin (BTC) and Ethereum (ETH).
Wall Street giant Citigroup updated its year-end target for ETH upwards in its published report, while lowering its BTC forecast.
At this point, the bank raised its year-end price target for Ethereum from $4,300 to $4,500, citing strong demand from ETFs and digital asset treasuries.
Citigroup pointed out that Ethereum could create similar investor excitement in the ETFs and treasury strategies space by following in Bitcoin’s footsteps.
In response, the bank lowered its Bitcoin price forecast to $133,000 from $135,000, citing countervailing macro factors such as a strong dollar and weakening prices of gold, a traditional safe haven.
Citigroup stated in a report released yesterday that despite the risk of missing out on important economic data due to the US government shutdown, they expect the Fed to continue cutting interest rates for the rest of the year. Citi economists indicated that the Fed will likely cut interest rates by 25 basis points in October and December, as indicated by the dot plot.
*This is not investment advice.