Citibank Report “Bitcoin: 21st Century Gold”: Bitcoin price could hit the $3,18,000 mark by December 2021
Recently, when the Bitcoin price increased sharply, the name Bitcoin – the leading cryptocurrency in the market – made a lot of noise in the investor community. And even if the price drops by nearly $ 2,000 in just a few dozen hours, people are hopeful it will create a pullback shortly.
Citibank Report “Bitcoin: 21st Century Gold”: Bitcoin price could reach $ 318,000 by 2021
Citibank’s report calls Bitcoin the new gold:
“It is an asset with limited supply. It is digital. It moves across borders easily and the ownership is opaque.”
With Bitcoin forecast to reach $ 318,000 by 2021, it seems Citibank is predicting a 19x increase from current levels in the $ 17,000 – $ 18,000 region.
Bitcoin has increased by almost 160% per year since the December 31 close of $ 7,196. Before that, Bitcoin hit a record high of $ 19,870 on December 17, 2017.
“The price action has been much more symmetrical over the past seven years or so, forming what looks like a very well-defined channel and this gives us an upside similar to the last rally. Such an argument would suggest this move could potentially peak in. December 2021 at the high point of the channel, suggesting a move to as high as $ 318,000. Only time will tell if we end up at such lofty levels, but the backdrop and the price action clearly suggest the potential for a major move on the upside in the next 12 – 24 months. ”
Bitcoin surged 73% in 2018 after seeing a hike of 1,337% in the previous year. Global attitudes are also softening toward the use of crypto assets. The International Monetary Fund (IMF), for example, released an explanatory video about cryptocurrencies in August 2020 with a neutral themed approach.
Jefferies’ Global and Asia Equity Strategist Chris Wood in his weekly newsletter titled Greed & Fear said investors who do not own bitcoin should buy now and take exposure to it on the next dramatic pullback.
“Gold and bitcoin are not mutually exclusive. But what has become very clear is that bitcoin has been massively outperforming gold as a hedge against G7 central banks’ balance sheet expansion. There are now custodial arrangements in place to own bitcoin, which makes institutional ownership of the asset class possible. The SEC-approved Bitcoin ETFs are surely coming sooner or later, as central banks formally embrace digital currencies, something the People’s Bank of China has already done.”
You can see the BTC price here.
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