Managing Director of Citibank: «Bitcoin will reach $318,000 by December 2021»

16.11.2020
The Managing Director of Citibank noted the similarity between the 1970s gold market and the current bitcoin market. In his opinion, the bitcoin price may reach $318,000 by December 2021.

According to Thomas Fitzpatrick, Citibank’s managing director, in a report aimed at the bank’s institutional clients, the entire existence of the bitcoin was characterized by serious price fluctuations, «precisely because it supports the long-term trend. The information about the report was first published by the user of social network Twitter ClassicMacro.

Fitzpatrick pointed to the weekly chart of the Bitcoin price, and after conducting a technical analysis of previous highs and lows, he said that by December 2021 the price of the crypt currency may reach $318,000. A ClassicMacro user commented on that statement:

«This type of technical analysis is of no particular value. It is senseless to guess the price at a certain moment using technical analysis. All we know is that the price will probably keep growing»;

The Managing Director of Citibank drew attention to the «exponential movement» of the Bitcoin price in 2010-2011 as a «very similar» to the gold market of the 1970s. Gold had been in the limited price range of $20 to $35 for 50 years before there was a price breakthrough after US President Richard Nixon’s administration changed fiscal policy in 1971;

According to Fitzpatrick, the separation of gold from fiat currencies, the COVID-19 pandemic and the desire of central banks to pursue an aggressive quantitative easing policy could lead to an explosive rise in the price of bitcoin in the future;

It should be reminded that recently Managing Director of Grayscale Investments Michael Sonnenshein stated that according to the report of JPMorgan Chase bank, Bitcoin drags a part of ETF investments to gold