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A senior executive at US financial giant Citibank wrote a report drawing on the similarities between the 1970s gold market and bitcoin.
Bitcoin’s entire existence has been characterized by major price swings, “exactly the kind of thing that supports a long-term trend,” said Thomas Fitzpatrick, Citibank’s chief executive, in his report intended solely for the bank’s institutional clients. .
The report was first disclosed to the cryptocurrency community by Twitter user “ClassicMacro” in a tweet on Saturday, noting that Fitzpatrick is “a huge fan of lunar lenses”.
Fitzpatrick pointed to bitcoins weekly chart and used technical analysis (TA) of previous highs and lows to determine a goal of $ 318,000 by December 2021.
“This kind of technical analysis is of little value,” ClassicMacro commented in its tweet. “There is no advantage in predicting goals so far with TA. All we know is that the price is likely to continue to rise. “
Citibank’s executive drew on bitcoin’s 2010-2011 “exponential move” as “very reminiscent” of the 1970 gold market. Gold had lived 50 years in a tight $ 20 to $ 35 price range before. that a breakout would occur after a change in fiscal policy by the Nixon administration in 1971.
According to Fitzpatrick, a decoupling of gold from fiat currencies, the COVID-19 pandemic and a desire for central banks to pursue aggressive quantitative easing policies could lead to explosive future growth in bitcoin prices.
“Readers love it,” ClassicMacro commented. “What matters here is that Citi customers are exposed to the bitcoin moon.”
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