Bitcoin: Citibank sets target of USD 318,000 for the “new gold

Citibank now joins the circle of those who compare Bitcoin (BTC) with gold. Based on this, Citibank forecasts a price per BTC of over 300,000 US dollars by the end of 2022.

“Digital gold”, “gold of the 21st century” – the comparison of Bitcoin (BTC) with gold is now part of the standard repertoire of financial advisors and advocates. Bitcoin, the most important and oldest crypto currency, is thus set to become an important instrument for safeguarding assets. Now also the Citibank submitted an analysis for its institutional customers, in which Bitcoin the development is predicted, which the gold price made after 1970. The paper became known about a leak via Twitter and should please investors: Because if Citibank’s forecast is correct, Bitcoin will experience a rally with a price curve leading to 318,000 US dollars in the coming 12 to 24 months.

Bull market Bitcoin – why Citibank recommends BTC

Citibank analyst Tom Fitzpatrick mixes technical analysis and historical parallels in his Bitcoin report. He starts from 1971, when the US Federal Reserve abandoned the coverage of dollars by gold. The gold price then began to move, targeting all-time highs of $2,000 in 2020. Gold is once again proving to be a sought-after security in times when monetary policy is breaking new ground. In view of the corona pandemic, the Fed in the USA, the ECB in the euro zone and also the Bank of Japan are making massive amounts of money available to prevent economic disruption. It is obvious that this also creates considerable risks for inflation – or even worse: deflation.

But Fitzpatrick sees gold as a store of value in the 21st century at a disadvantage to Bitcoin. Because with Bitcoin, there are no costs and expenses for physical storage and transport that have to be considered with gold. Fitzpatrick cites the worldwide acceptance of BTC in particular as a further major plus point for Bitcoin. This will also take effect in the event that central banks and politicians want to regulate Bitcoin strictly. For Fitzpatrick, the comparison with gold is also suggested by the fact that the amount of all BTCs is capped at 21 million, thus copying the rare moment of gold.

With these arguments behind him, Fitzpatrick looks at the historical price curve of Bitcoin for Citibank. In this curve, rallies alternate with corrections, in his view a clear indicator of a long-term trend. According to Fitzpatrick, the arrival of Bitcoin in the mainstream favors the chances that the rally that has now begun at BTC will continue for years to come. He paints Bitcoin’s charts further into the future on the basis of data from 2010 onwards, reaching a value of $318,000 per BTC as early as December 2021.

Conclusion: Golden prospects for Bitcoin?

Using methods similar to Fitzpatrick’s, the Bayerische Landesbank, for example, comes to “only” $90,000 for Bitcoin in the near future in its forecast, although it was prepared before the Corona crisis. Meanwhile, the major US bank JP Morgan already sees the trend that Bitcoin is outstripping gold as a store of value. The current report of the Citibank is to that extent contentwise little original, but it confirms: The comparison of Bitcoin with gold becomes also in the classical financial world the normality and certifies BTC substantial chances.

What is exciting here is that Citibank and Fitzpatrick specifically address institutional investors in their analysis and make a recommendation for each BTC. Exactly this customer base will also be necessary to keep the liquid demand for Bitcoin high and thus drive the price. It actually seems that the signs for Bitcoin are better than ever.

Best place to buy Bitcoin:

Be the first to comment

Leave a Reply

Your email address will not be published.