Market Giant Issues Stark Bitcoin Price Alert
Bitcoin has experienced a significant decline, dropping back toward the $70,000 mark over the past 24 hours, as a worst-case scenario for its price appears to be becoming more probable. The bitcoin price, which surged toward $80,000 per bitcoin earlier this week amid optimism that the U.S. and Israel conflict in Iran might be winding down, still sits significantly below its October 2025 peak, despite a renowned billionaire forecasting the demise of the U.S. dollar. As traders prepare for Elon Musk’s upcoming crypto innovation, a prominent bank has unexpectedly taken a negative stance on bitcoin. Analysts have revised their bitcoin price forecast downward, asserting that bitcoin is unlikely to reach a new all-time high within the next year, primarily due to the delay of the crypto market structure bill, the Clarity Act, in Congress.
The likelihood of the Clarity Act, which aims to create a detailed regulatory framework for bitcoin and crypto while clarifying the oversight of crypto markets and participants, successfully passing before the year’s end has dropped to 60% on the Polymarket prediction platform, a significant decline from its peak of nearly 90% in February. “Regulatory catalysts will drive further adoption and flows but the window of opportunity for U.S. legislation this year is narrowing,” strategist Alex Saunders said in a note, giving bitcoin a price target of $112,000, down from $143,000 previously. Citi’s latest bitcoin price target indicates that even analysts who were once optimistic are now adopting a bearish stance in light of the anticipated bitcoin price crash in late 2025.
Earlier this week, Alex Thorn cautioned that “time is running out” to pass the bill following reports that U.S. Senate majority leader John Thune indicated the bill might encounter additional delays. U.S. President Donald Trump has urged crypto and banking lobbyists to reach a consensus on the bill following Coinbase CEO Brian Armstrong’s unexpected withdrawal of support in January, which derailed the initiative. “The U.S. needs to finalize market structure, ASAP.” Trump posted to Truth Social “Americans should earn more money on their money.” Bitcoin and crypto market observers are growing more pessimistic regarding the likelihood that new crypto regulations will reach Trump’s desk in the near future.
“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,” stated Jimmy Xue. Xue highlighted bitcoin’s “jarring $110 billion wipeout” last week as indicative of “institutional uncertainty” amid the “transformative” integration of crypto, with market giant BNY Mellon rolling out exchange-traded fund custody services, Kraken gaining access to the Federal Reserve payment system, and NYSE operator Intercontinental Exchange pouring $25 billion into OKX. “The regulatory picture compounds this institutional uncertainty,” Xue stated.
