Bitcoin to hit $318K

Bitcoin to hit $318K by December 2021: CitiBank managing director

The banker points out that ‘the whole existence of Bitcoin has been characterised by unthinkable rallies followed by painful corrections and suggested that another rally is coming’

Citibank managing director Tom Fitzpatrick shared a rather positive outlook on the future of Bitcoin (BTC).

In a note sent by Citibank to its institutional customers and leaked on a twitter, Fitzpatrick suggests that the price of Bitcoin will reach $318,000 by December 2021. He says:

“Improbable though that seems it would only be a low to high rally of 102 times (the weakest rally so far in percentage terms) at a point where the arguments in favour of Bitcoin could be at their most persuasive ever.”

In his analysis, Fitzpatrick points out that “the whole existence of Bitcoin has been characterised by unthinkable rallies followed by painful corrections.” This kind of pattern—he claims—sustains a long-term trend. Now, he suggests, another big upwards movement may be coming for the asset.

Reasons why Fitzpatrick believes another major Bitcoin rally is coming include the pandemic forcing the world towards fiscal austerity, the Federal Reserve’s quantitative easing measures (printing massive quantities of dollars) and foreseen fiat currency debasing. Such a positive view on Bitcoin’s future can be viewed as surprising from the executive of a bank that first started work on its own digital asset and then decided to kill the project.

Not everybody is convinced

The Twitter leaker—who goes by the name Alex—sows some doubt when it comes to the relevance and credibility of the analysis he himself leaked. He notes that Fitzpatrick “is a big fan of moon targets” and cited a recent gold price prediction “north of $8,000, possibly in as little as the next 2-3 years” by him. Alex commented:

“This kind of technical analysis is of little value. There is no edge in guessing targets so far in time with TA. All we know is that price is likely to continue going up, and a lot.”

While he does not believe that Fitzpatrick’s technical analysis in and of itself is of much value, Alex says:

“What matters here is Citi’s clients being exposed to the bitcoin moon.”

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Adrian is a newswriter based out of Pisa, Italy. He's passionate about cryptocurrency, digital rights, IT, tech and futurology and likes to think about the future in a positive way.