For Tom Fitzpatrick, bitcoin is the “gold of the 21st century.”
According to Fitzpatrick, bitcoin will have new highs with a longer bullish period.
Tom Fitzpatrick, Citibank manager, refers to Bitcoin as “the gold of the 21st century”. Through a report aimed at the bank’s institutional clients, Fitzpatrick compared the first major bull run on bitcoin, between 2010 and 2011, with the rise in the price of gold in the 1970s.
In the report, leaked on Twitter this Friday, November 13, the executive valued the shortage of bitcoin (BTC) and assures that we are in a digital age. “Gold is an asset of the 20th century,” he argued..
Likewise, the analyst considered very important the ability to easily transfer value around the world and the “opaque ownership” of those who own bitcoins. That is Bitcoin’s degree of privacy is seen as part of its value, before Fitzpatrick’s eyes.
In addition to its valuation of bitcoin as an asset, Citibank’s analysis contains a prediction about the price for the next year. After a technical analysis, which is worth in addition to previous bullish periods, the report states that we could see a new record for the price of bitcoin in 2021.
According to estimates by Fitzpatrick, an executive with more than 30 years of career in the banking institution, for December of next year the price of bitcoin would be exceeding $ 318,000.
Fitzpatrick estimates that Bitcoin will be surpassing $ 318,000 by 2021. Source: @ classicmacro / Twitter
Among its bullish considerations, it stands out that each positive cycle for the pioneer cryptocurrency exceeds the previous one in time. First, 2 years between 2011 and 2013; then almost 3 years, from the beginning of 2015 to the end of 2017. “Of course, consequently, it can be argued that there will be higher levels,” the report says.
As reported by CriptoNoticias, the current price of bitcoin above $ 16,000 was not seen since the run of 2017-2018. Specifically, since January 2018 the market value of BTC was not at current levels.
The institutional investment fever in bitcoin
This position of the representative of Citibank seems to coincide with the new wave of institutional investment in bitcoin in recent months. Cases such as those of MicroStrategy, Square or the new investment records in Grayscale’s BTC fund show a renewed interest in cryptocurrency.
There are those in the bitcoin environment who question the Citibank report. Mainly, by positions of the same bank with respect to bitcoin in the past and the idea that the creation of Satoshi Nakamoto is called precisely to end the hegemony of the banks and its impact on the issuance of money. “That the big banks get bullish on Bitcoin should worry you. They have ulterior motives, ”the @CryptoWhale account wrote via Twitter.
However, the main reaction to this report has been positive.. Most of the comments on Twitter focus on Fitzpatrick’s price prediction and add this “21st century gold” stance to recent institutional attitude.
The truth is that, meanwhile, bitcoin continues to gain traction among companies and governments around the world. Already an elected senator in the United States has assured that she hopes to position the issue on the national agenda and more and more analysts and personalities see bitcoin as a safe asset to protect value.