CitiBank: Bitcoin Has Chance To Repeat Gold’s Upward Trajectory in the 1970s
CitiBank Analyst Tom Fitzpatrick believes the Bitcoin market now resembles the gold market in the 1970s.
Inflation of the dollar in the 70s led to increased demand on gold. In 1971 the President USA Richard Nixon undertook 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.
By words Fitzpatrick, high dollar inflation last thing time provides a basis for comparing Bitcoin to gold. IN his new report “Bitcoin: Gold of the XXI century” he writes: “Motion bitcoin occurred as a consequence of the Great Financial Crisis of 2008 when took place new changes in monetary mode and we dropped to zero interest rates “.
Fitzpatrick notes that the first bullish cycle in the bitcoin market occurred in 2011-2013. As a result, the price increased 555 times. IN the present time financial stimulus measures against the backdrop of the coronavirus pandemic lead to the formation of conditions similar to the 1970s, he says.
The analyst also provides a graph that suggests goals. for bitcoin above $ 300,000 by the end of 2021. Four-year bullish cycle after 2011 and ascending channel from 2013 to him think they are drawing 102x growth from 2018 lows of $ 3,200.
“Price movements have become much more symmetrical per the last 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, ”writes is he.
In his other report Fitzpatrick also predicts a rise in gold to $ 4,000 – 8 000, expecting an imminent economic crisis. In the past, the analyst has repeatedly warned about the future collapse stock market and predicted on this gold rise background.