Bitcoin Will Trade at $318,000 Says Citibank Executive
November 18, 2020 12:10 pm
Tom Fitzpatrick, head of Citifxtechnicals product, Citibank predicts that the price of Bitcoin will peak at $318,000 by end of 2021. However, he says that his prediction might seem unlikely to happen, he mentions that such a surge will still be the weakest rally for the cryptocurrency while compared to other assets such as gold. According to him, bitcoin is all about ”unthinkable rallies followed by painful corrections.”
Writing in a report titled, Bitcoin: 21st Century Gold, Fitzpatrick makes the surge argument for bitcoin. He mentioned that the crypto’s current trajectory appears to be similar to that of gold in the 1970s.
Before structural changes were implemented in the early 1970s, gold had spent 50 years of trading in the $20-$35 range. However, after changes were introduced gold surged. It recently touched a new all-time high in August before settling at just under $1,900 per ounce.
Fitzpatrick emphasizes that although gold is expected to benefit from the deluge of new money entering circulation, the precious metal has unique limitations that do not seem to afflict bitcoin.
The executive added:
“Gold has restrictions such as storage, non-portable, and could possibly be even called ‘yesterday’s news’ in terms of a financial hedge. Bitcoin is the new gold.”