CitiBank Managing Director Says Bitcoin (BTC) Can Touch $318K By December 2021
Thomas Fitzpatrick, the CitiBank managing director has recently published a fresh report dubbed “Bitcoin: 21st Century Gold” wherein he has given an ambitious target of the Bitcoin (BTC) price touching $318,000 by December 2021.
Referring to Bitcoin as the Digital Gold, the CitiBank executive notes that Bitcoin can possibly experience a breakout similar to the Gold’s 1970 bull run. During the global industrialization and inflation in the USD in 1970s, the demand for Gold as a hedge jumped significantly in comparison to other market currencies.
Since then, Gold price has jumped significantly in the last 50 years. The CitiBank executive thinks that Bitcoin (BTC) has a similar golden opportunity in front of it. The report notes: “Bitcoin move happened in the aftermath of the Great Financial crisis (of 2008) which saw a new change in the monetary regime as we went to ZERO percent interest rates.”
He adds that during the first BTC bull run of 2011-2013, the price of Bitcoin surged 555 times. Currently, with the Coronavirus-driven economic meltdown, the Federal Reserve has been pumping trillions of dollars as part of its quantitative easing measures.
A number of experts from the financial industry are predicting major inflation surge in the coming months. Well, this has got the Bitcoin (BTC) enthusiast to cheer thinking that BTC will serve as a potential hedge in such testing times.
Over the last few months, institutional players have jumped amassing major quantity of Bitcoins. Digital asset manager Grayscale has registered over 170% in assets under management for its Bitcoin Trust (GBTC) instrument. Even, JPMorgan strategists recently said that institutional players have started preferring Bitcoin over gold.
The result is that Bitcoin price has surged over 50% in the last 2 months itself and over 125% year-to-date. Last week, Bitcoin (BTC) price attained its new 2020-high of $16,420 attaining this levels for the first time since January 2018.
Fitzpatrick’s recent predictions comes based on technical analysis and charts comparing weekly price moves for BTC during the past bull runs. In addition to it, Fitzpatrick also predicts that even gold can rise up to the levels of $4000-$8000 in case of imminent economic crisis.