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A senior executive at U.S. financial giant Citibank wrote a report on the similarities between the 1970s gold market and bitcoin.
Bitcoin’s entire existence has been characterized by large price swings, “exactly the sort of thing that supports a long-term trend,” said Thomas Fitzpatrick, CEO of Citibank, in his report intended only for institutional clients. form the bank.
The report was first leaked to the cryptocurrency community by Twitter user “ClassicMacro” in a tweet Saturday, noting that Fitzpatrick is “a big fan of lunar targets.”
Fitzpatrick pointed out bitcoin weekly chart and used technical analysis (TA) of past highs and lows to determine a target 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 guessing targets so far in time with TA. All we know is that prices are likely to continue to rise. “
The Citibank executive called Bitcoin’s “exponential move” of 2010-2011 “very reminiscent” of the 1970 gold market. Gold had seen 50 years of a tight 20-35 price range. dollars before a breakout occurred after a change in fiscal policy by the Nixon administration in 1971.
A decoupling of gold from fiat currencies, the COVID-19 pandemic and the desire of central banks to pursue aggressive quantitative easing policies could lead to explosive future growth in bitcoin prices, according to Fitzpatrick.
“Readers love it,” ClassicMacro commented. “What matters here is that Citi customers are exposed to the Bitcoin moon.”
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