Bitcoin has fallen sharply back toward $70,000 per bitcoin over the last 24 hours as a worst cast scenario for the bitcoin price looks increasingly likely.
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The bitcoin price, which had charged toward $80,000 per bitcoin earlier this week on hopes the U.S. and Israel war in Iran could be coming to an end, remains well below its October 2025 peak (even as a legendary billionaire predicts the end of the U.S. dollar).
Now, as traders gear up for Elon Musk’s imminent crypto game-changer, a major Wall Street bank has suddenly soured on bitcoin.
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Analysts with Wall Street giant Citi have slashed their bitcoin price forecast, predicting that bitcoin won’t make a fresh all-time high over the next 12 months due to the crypto market structure bill known as the Clarity Act stalling in Congress.
The odds of the Clarity Act, designed to establish a comprehensive regulatory framework for bitcoin and crypto and clarify oversight of crypto markets and participants, passing before the end of the year have plummeted to 60% on the Polymarket prediction platform, down from a peak of almost 90% in February.
"Regulatory catalysts will drive further adoption and flows but ?the window of opportunity for U.S. legislation this year is narrowing," Citi ?strategist Alex Saunders said in a note seen by Reuters, giving bitcoin a price target of $112,000, down from $143,000 previously.
Citi’s new bitcoin price target suggests even previously bullish analysts are feeling bearish following the late 2025 bitcoin price crash.
Earlier this week, Alex Thorn, a researcher with the crypto and data centre infrastructure company Galaxy Digital, warned "time is running out" to pass the bill after U.S. Senate majority leader John Thune reportedly said the bill could face further delays.
U.S. president Donald Trump has called on crypto and banking lobbyists to come to an agreement on the bill after Coinbase chief executive Brian Armstrong torpedoed it when he abruptly pulled the exchange’s support in January.
“The U.S. needs to get market structure done, ASAP. Americans should earn more money on their money,” Trump posted to Truth Social.
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Bitcoin and crypto market watchers are feeling increasingly gloomy about the possibility fresh crypto regulation will make its way to Trump’s desk any time soon.
“The American Bankers Association formally rejected White House Clarity Act compromises [last] week, effectively killing crypto market structure legislation despite its July 2025 House passage," Jimmy Xue, chief operating officer at cross-asset liquidity infrastructure provider Axis, said in emailed comments.
Xue pointed to bitcoin’s “jarring $110 billion wipeout” last week as a sign of “institutional uncertainty” in the face of “transformative” crypto integration with Wall Street giant BNY Mellon launching exchange-traded fund (ETF) custody services, Kraken securing Federal Reserve payment system access, and NYSE operator Intercontinental Exchange investing $25 billion in OKX.