}
A senior employee of US financial giant Citibank has written a report on his expectation of Bitcoin in the coming year. The analyst wrote this based on similarities between the 1970s gold market and Bitcoin.
https://twitter.com/classicmacro/status/1327381449000034307
- classicmacro
Bitcoin’s entire existence is characterized by massive price swings, just the kind of thing that supports a long-term trend, Thomas Fitzpatrick, a director at Citibank, said in his analysis. The analysis of the Bitcoin price is only intended for institutional clients of the bank.
The report was first leaked to the cryptocurrency community by Twitter user ClassicMacro last Saturday. He noted that Fitzpatrick’s incredibly ambitious predictions, or target moon.
Fitzpatrick pointed to Bitcoin’s weekly chart, using a technical analysis of past highs and lows. He hit a target of $ 318,000 in December 2021.
Technical analysis and gold
Totally fantastic of course, but in the end you have to take these kinds of predictions with a grain. ClassicMacro also says that: “These kinds of technical analyzes are of little value. Looking so far ahead in time with a technical analysis is of no benefit to guessing goals. All we know is that the price is likely to continue to rise. “
The president of Citibank took a close look at Bitcoin’s “exponential movement” from 2010–2011. This strongly reminded him of the 1970 gold market. Gold moved between $ 20 and $ 35 in a restricted channel for 50 years. The course exploded only after a change in tax policy was made by the Nixon government in 1971.
Many factors play a role
A decoupling of gold and fiat currencies, the COVID-19 pandemic and central banks’ desire to pursue aggressive quantitative easing policies could lead to future explosive Bitcoin price growth, according to Fitzpatrick.
An advantage of these kinds of beautiful predictions is that you attract attention. “Readers love this,” said ClassicMacro. “The bottom line is that Citi’s customers are exposed to the bitcoin moon.”