Bitcoin & Ether Set for 2026 Comeback on Crypto Regulation, Citi Says
Wall Street giant Citi forecasts a strong rebound for Bitcoin (BTC) and Ethereum (ETH) in 2026, citing clearer crypto regulations and potential institutional inflows as key drivers, despite both assets finishing 2025 with losses.
BTC Base Forecast: ~$143,000; ETH Base Forecast: ~$4,300.
Bullish Scenario: BTC could rise to ~$189,000; ETH ~$5,100, if regulatory clarity and institutional adoption accelerate.
Bearish Scenario: BTC may drop to ~$78,000; ETH ~$1,270 if macroeconomic headwinds and market risks persist.
Catalysts: Institutional inflows (~$15B ETFs), clearer regulatory frameworks, and renewed investor confidence.
2025 Performance: Both BTC and ETH struggled due to risk-off sentiment and market uncertainty.
Global Regulatory Context:
UK’s FCA launched consultations on crypto rules, aiming for finalized regulations by end-2026.
UK government plans formal crypto regulation starting October 2027, aligning with US approaches to protect investors.
Detailed proposals cover market abuse controls, capital standards, and treatment of crypto assets as financial products.
“Regulatory clarity is the main catalyst for crypto’s 2026 recovery. BTC and ETH will likely follow frameworks that encourage institutional participation, balancing innovation with investor protection.”
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