Citi Slashes Crypto Targets on CLARITY Delay as Atkins Promises Framework

Citigroup has pulled back its crypto price target for this year. The firm cut expectations for Bitcoin (BTC), Ethereum (ETH), and several crypto-linked stocks as well. The bank was seen citing the delay in the CLARITY Act that could have redefined crypto in 2026 as the reason for its shift in stance. The bank lowered its Bitcoin price target to $112,000 from 143,000 for 2026. Ethereum was pushed from $4,304 down to $3,175.

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Galaxy Digital is the Only Crypto Stock Citi raised as Gemini Gets Cut 60%

The revisions were not limited to tokens. Across several crypto stocks that Citigroup tracks, most names saw a cut. Strategy, the Michael Saylor-led firm holding more than 760,000 BTC, had its price target reduced 20% to $260 from $325. Despite this, Citi kept a ‘Buy’ rating. As it is, Strategy’s stock was painted red. The firm had a clearly rough week as its stocks dipped by nearly 5%.

Meanwhile, Gemini was hit harder. The firm’s forecast was slashed by 60% from $13 to $5.50. Citi even pushed the rating from ‘Neutral’ to ‘Sell’. BitGo was trimmed slightly from $18 to $17. Lastly, Bullish also saw a small downgrade from $67 to $65.

Galaxy Digital stood out as the only exception. Citi raised its target to $28 from $25. The firm maintained a neutral rating. This is a rather small move, but in a note dominated by downward revisions, Galaxy Digital was the lone upgrade. Despite this bullishness, the GLXY stock saw a 10.50% drop throughout the week.

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A Look Into Bearish Scenarios

Citigroup’s message was quite clear through its latest revisions. The firm believes that without regulatory clarity, it is hard to justify more aggressive upside. The bank also pointed to a bearish scenario where Bitcoin could dip to $58,000 and Ethereum to $1,198. This could be in the case of a weaker macro environment. At press time, BTC was trading at $70,882.85, and ETH was priced at $2,151.28.

This change came around the same time that the SEC tried to shift the regulatory tone. The financial regulator’s Chair, Paul Atkins, said the SEC is working toward a clearer crypto framework. This includes guidance on how different types of crypto assets fit within existing law. In a public statement, he described a system that separates digital commodities, collectibles, tools, and stablecoins from securities. Citi ​strategist Alex Saunders said,

“Regulatory catalysts will drive further adoption and flows but ⁠the window of opportunity for U.S. legislation this year is narrowing.”

For now, Citi’s stance reflects where things actually stand. But the latest shift comes as the firm is expanding its own presence in the space through Bitcoin’s integration into its traditional banking system.

The CLARITY Act is still moving slowly, and the window for passing meaningful legislation in 2026 is getting tighter. The market is in an in-between phase. A framework is being outlined, but nothing solid has landed. Until that changes, expectations are starting to come down.

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