Thomas Fitzpatrick, a senior executive at the U.S.-based financial giant Citibank, has published a report claiming the price of bitcoin could surpass $300,000 by December 2021, drawing on similarities between BTC and the 1970s gold market.
Per Fitzpatrick, the price of bitcoin being characterized by major swings is “exactly the kind of thing that sustains a long-term trend.” The report, first reported on by CoinDesk, was leaked by Twitter user “ClassicMacro,” who pointed out Fitzpatrick is a “big fan of moon targets.”
In its report, Fitzpatrick pointed to bitcoin’s weekly chart and, through technical analysis of prior lows and highs, determined his price target of $318,000 by December of next year. Pointing to bitcoin’s “exponential move” from 2010 to 2011, the analyst claimed it is “very reminiscent” of the 1970s gold mark.
At the time, gold had been trading between a tight range between $20 and $35 for 50 years, before breaking out after a change in fiscal policy by the Nixon administration. The COVID-19 pandemic, fiat currencies decoupling from gold, and central banks pursuing aggressive quantitative easing policies could see BTC’s price grow, Fitzpatrick argued.
ClassicMacro, commenting on the report, said this type of technical analysis is of “little value.”
On social media, analysts pointed out that back in 2013 Fitzpatrick predicted the price of gold could hit $3,500 “in the next couple of years,” again drawing from the 1970s gold market. Gold was then trading at $1,400, and is now at $1,870. Similarly, the analyst claimed silver would hit $100. The precious metal is currently trading at $24.
Featured image via Unsplash.
