For Thomas Fitzpatrick, CEO of Citibank, Bitcoin (BTC) must be considered as the new gold of the 21st century. He predicts that the current upward trend in assets combined with the current economic uncertainties could allow BTC to exceed $300,000 by December 2021.
Citibank management sees a $300,000 Bitcoin (BTC) by 2022
Bitcoin, the gold of the 21st century
Thomas Fitzpatrick is convinced that Bitcoin (BTC) will reach $300,000 before 2022. To arrive at such an optimistic – even utopian – conclusion in just over a year, he bases his projection on an analysis of Bitcoin’s previous highs and lows. Citibank’s CEO relies on similarities between the gold market of the 1970s and that of Bitcoin.
In a note published last week, the fund manager explains his view of the facts and why Bitcoin’s potential is immense.
However, Fitzpatrick begins by looking at the long-term trend in the price of Bitcoin. According to him, Bitcoin’s movements are characterized by „inconceivable rises followed by painful corrections“.
Thomas Fitzpatrick believes that Bitcoin is currently in the Bitcoin Revolution middle of a bull run, which began in December 2018 and could last until the end of 2022. Looking at previous bull runs, he says that the correction period following a sharp rise in Bitcoin is approximately 12 months.
Based on his analysis of previous market cycles, he therefore comes to the very optimistic conclusion that by December 2021, Bitcoin is expected to hit $318,000. Thereafter, according to Fitzpatrick, a severe correction is expected.
A habitué of rather questionable predictions
Despite his executive position at one of the world’s largest banks, Thomas Fitzpatrick is a regular at ultra-optimist predictions. Moreover, if Bitcoin really reaches $318,000, the capitalisation of the queen of the cryptomonnages would be $6 trillion (compared to the current $300 billion), close to the estimated $10 trillion capitalisation of gold.
In 2013 in particular, the CEO of Citibank said that gold was heading towards $3,500 and silver towards more than $100 per ounce. The analyst saw the price of these metals reach these targets within a few years. However, 7 years later, neither gold nor silver has reached such a value per ounce.
Larry Cermak, director of research at The Block, even suggests that Fitzpatrick used the same reasoning as at that time to predict the price of Bitcoin:
Of course, it is impossible to predict exactly what the price of Bitcoin will be on a given date. Despite this rather surprising prediction, which is unlikely to come true on the given date, it shows once again that the big banks are looking very seriously at the case of Bitcoin.
Whether seen in a positive light or not, the world’s largest banks – and especially JP Morgan – now recognise the potential of Bitcoin. As financial analyst CryptoWhale points out on Twitter, Citibank’s management’s view of Bitcoin has changed:
„Citibank] was pushing people to sell [their] Bitcoin when it was trading at less than $400 in 2013,“ the analyst reports.