Citibank analyst has suggested the Bitcoin could pass $300,000 by December 2021 saying the cryptocurrency is in the same trajectory as the 1970s Gold market. Thomas Fitzpatrick, Citibank Managing Director, in a report says that bitcoin’s existence has been characterized by major price swings that are necessary to sustain a long-term trend.
He says that bitcoin’s price movement in 2010-11 is reminiscent of the 1970s gold market. In this case, Gold had a 50-year price cycle in the range of $20-$35 before the United States undertook a fiscal change in 1971. Global industrialization and inflation in the dollar saw people rush to buy gold and other currencies. Over the next 50 year, the price of gold has bulged to the current $1800 buoyed by a relatively free currency market.
Bitcoin has been bullish in the last decade; first the two-year rally between 2011 to 2013 where the price grew exponentially by 555 times and the 2017 Bull Run where bitcoin hit the all-time high of $20,000.
Fitzpatrick’s analysis relied on technical analysis of prior highs and lows to arrive at a target of $318,000 by December 2021. He says that bitcoin is the digital gold of the 21st century.
Fitzpatrick believes that the bitcoin price craze will be propelled by the decoupling of gold from fiat currencies, the coronavirus pandemic, and the aggressive pursuit of quantitative easing policies by central banks.