Citibank Managing Director Thomas Fitzpatrick pointed out in a report aimed at the bank’s institutional clients, that Bitcoin’s entire existence has been characterized by severe price fluctuations. This is “precisely what supports the long-term trend,” he noted. The information about the report was first published by the user of the social network Twitter ClassicMacro.
Fitzpatrick pointed to the chart of weekly Bitcoin price and, after conducting a technical analysis of previous highs and lows, predicted that the price of the cryptocurrency could reach $318,000 by the end of 2021.
The Managing Director of Citibank drew attention to the “exponential movement” of the Bitcoin price in 2010-2011 as “very reminiscent” of the 1970s gold market. Gold was 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 ongoing coronavirus pandemic, and the push by central banks to engage in all-out quantitative easing measures can potentially lead to explosive growth in the price of Bitcoin soon, Fitzpatrick noted.
As a reminder, Grayscale Investments’ managing director Michael Sonnenschein recently said that, according to a report by JPMorgan Chase, Bitcoin is taking over some of the ETF investments in gold.
