Citibank predicts bitcoin price rises to $318,000 by end of 2021

The rate of the first cryptocurrency by the end of 2021 is capable of reaching $318,315 thanks to its consolidation in digital statusgold in the XXI century. This forecast was presented by Tom Fitzpatrick, managing director of one of the largest banks in the world Citibank, Crypto Briefing reports.

The CitiBank Governor believes thatthe bitcoin market now resembles the gold market in the 1970s... The inflation of the dollar in the 70s led to an increaseddemand for gold. In 1971, US President Richard Nixon carried out a series of reforms, abandoning the pegging of the dollar to gold and the Bretton Woods system. Over the next 50 years, gold has shown strong growth.

According to Fitzpatrick, the recent high inflation of the dollar provides grounds for comparing bitcoin to gold. In his new report “Bitcoin: Gold of the XXI century" he's writing:

"Bitcoin's move came as a result of the Great Financial Crisis of 2008, when new changes in the monetary regime took place and we went down to zero interest rates."

Fitzpatrick notes that the first bullish cycle onBitcoin market happened in 2011-2013. As a result, the price increased 555 times. Currently, financial stimulus measures amid the coronavirus pandemic are creating conditions similar to those of the 1970s, he says.

The analyst also provides a graph suggestingtargets for Bitcoin above $300,000 by the end of 2021. The four-year bull cycle since 2011 and the rising channel since 2013, in his view, paint a 102x rise from the 2018 lows of $3,200.

Institutional technicians (Citi) are now publishing bull-porn charts with $ 300k + 2021 targets. #bitcoin pic.twitter.com/M2oVWBsk0S

- Bitcoin⚡️Munger (@BitcoinMunger) November 13, 2020

“Price movements have become much more symmetricalover the past seven years, having formed a well-defined channel, which makes it possible to predict an upward movement in a segment similar to the last rally in 2017 "He writes.

In another of his reports, Fitzpatrick alsopredicts a rise in gold to $ 4,000 - 8,000, anticipating an imminent economic crisis. In the past, the analyst has repeatedly warned about the impending collapse of the stock market and predicted an increase in gold against this background.

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