Emre Yumlu 
The cryptocurrency market continues to digest the effects of the recent U.S. government shutdown, the first in seven years. While analysts expect its direct impact to remain limited, global banking giant Citigroup has released updated year-end price forecasts for Bitcoin (BTC) and Ethereum (ETH).
Ethereum Price Target Raised
In its latest report, Citigroup revised its outlook for Ethereum upwards. The bank increased its year-end target from $4,300 to $4,500, citing robust demand driven by ETFs and digital asset treasuries.
According to Citi, Ethereum could replicate Bitcoin’s earlier success in drawing institutional interest through ETF products and treasury strategies, potentially fueling stronger market momentum.
Bitcoin Forecast Revised Lower
On the other hand, Citigroup took a more cautious stance on Bitcoin. The bank adjusted its year-end price target for BTC down from $135,000 to $133,000.
The revision was linked to several macroeconomic pressures, including a stronger U.S. dollar and declining gold prices, both of which have traditionally acted as safe-haven assets. Citi suggested that these factors could create headwinds for Bitcoin in the short term.
Fed Rate Cuts Still Expected
The report also addressed potential implications of the U.S. government shutdown, noting that it could delay the release of key economic data. However, Citigroup maintained its expectation that the Federal Reserve will continue cutting interest rates throughout the remainder of the year.
Citi economists forecast 25 basis point cuts in both October and December, aligning with signals from the Fed’s dot plot projections.
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