International Financial Services Provider Citibank exposed clients to it’s Bitcoin target price of $318000 by December 2021.
CitiBanks Managing Director have released a report for institutional clients, called “Bitcoin, the 21st century gold” where he argues that it’s possible for Bitcoin to become the new Gold Standard.
The CitiBank’s Managing Director Tom Fitzpartrick explains his vision based on a sustainable long-term patterns analysis, and draws parallels between the current market and the 2008’s economy crisis when the Bitcoin was initially released and got the largest price increase as it received initial adoption in the digital economy.
In he’s report, Tom Fitzpatrick asks if we’re at the edge of the same economic development of the mainstream adoption of Bitcoin, which may increase the Bitcoin price drastically.
Drawing Parallels to Gold Market
By comparing the current Bitcoin market with Gold Market of the 1970s when it was traded at 20$ – 35$ range, Tom Fitzpatrick finds parallels on the price and demand dynamics of Bitcoin and Gold.
According to analysts data, the price of Bitcoin may hit $318000 at the end of December.
Is it possible?
Tom Fitzpatrick motivates he’s analysis based on data and highlights some key factors:
Tom is confident that the current economic crisis will lift off constraints of the monetary policy
Revisions of monetary policies and Bitcoin adoption is obvious to the analyst, which makes it a strong factor increasing the possibility of such bullish scenario.
The analyst points out that the current institutional markets are being rolled by changes that COVID-19 brings to our economy. “Better a dime now than a dollar tomorrow” — says Fitzpatrick about policies adopted by the financial markets midst the Covid-19 pandemic
In he’s report, Tom Fitzpatrick recalls previous events and refers to Bitcoin price historic data:
- It rallied for 2 years from 2011 to 2013 (multiplying by 555 times!)
- It fell from December 2013 to January 2015 (13 months) by 86%
- The price then rallied from January 2015 to December 2017 (2 years 11 months) multiplying 121 times
- Then it fell from December 2017 to December 2018 (12 months) by 84%
He further points out that the time periouds between these rallies are getting longer.
In conclusion Tom suggests that the EOY 2021 price will be traded around $318000 which is only 102 times increase, much weaker than the previous rallies.