Citibank’s managing director noted the similarities between the 1970s gold market and the current Bitcoin market. In his opinion, the price of bitcoin could reach $ 318,000 by December 2021.
As Citibank Managing Director Thomas Fitzpatrick pointed out in a report aimed at the bank’s institutional clients, Bitcoin’s entire existence has been characterized by severe price fluctuations, “precisely what supports the long-term trend.” The information about the report was first published by the user of the social network Twitter ClassicMacro.
Fitzpatrick pointed to the weekly chart of bitcoin price and, after conducting a technical analysis of previous highs and lows, stated that the cryptocurrency price could reach $ 318,000 by December 2021. ClassicMacro user commented on this statement:
“This type of technical analysis is of little value. It makes no sense to guess the price at a certain moment using technical analysis. All we know is that the price is likely to continue to rise. “
The Managing Director of Citibank drew attention to the “exponential movement” of the price of bitcoin in 2010-2011 as “very reminiscent” of the gold market of the 1970s. Gold was traded in a limited price range of $ 20 to $ 35 for 50 years before a breakout occurred following a fiscal policy change by the administration of US President Richard Nixon in 1971.
The separation of gold from fiat currencies, the COVID-19 pandemic and the push by central banks to pursue aggressive quantitative easing policies could lead to explosive growth in the price of bitcoin in the future, Fitzpatrick said.
As a reminder, Grayscale Investments’ managing director Michael Sonnenshein recently said that, according to a report by JPMorgan Chase, bitcoin is taking over some of the ETF investments in gold.