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Citibank Group’s Global head of Citifxtechnicals product, Tom Fitzpatrick expects to see the price of bitcoin peaking at $318,000 by end of 2021. Although he concedes that his prediction might seem improbable, Fitzpatrick argues that such a surge will still be the weakest rally for the digital asset when compared to other assets such as gold. He also adds that bitcoin is all about the”unthinkable rallies followed by painful corrections.” Bitcoin will see huge price swings before finally settling at the predicted price suggests Fitzpatrick.
Similar Trends
Writing in a report titled, Bitcoin: 21st Century Gold, Fitzpatrick makes the surge argument for bitcoin. He says the digital gold’s current trajectory appears to be similar to that of gold in the 1970s.
Before structural changes were implemented in the early 1970s, gold had spent 50 years of trading in the $20-$35 range. However, after changes were instituted gold surged. It recently touched a new all-time high in August before settling at just under $1,900 per ounce.
According to one report that analyzed Fitzpatrick’s paper, it is this “structural change in the modern-day monetary regime that ushered in a world of fiscal indiscipline, deficits, and inflation.” Therefore, the Citibank boss argues that bitcoin, which came to the fore at the aftermath of the “Great Financial crisis” of 2008-2009, is bound to have a similar run.
With the Covid-19 pandemic still haemorrhaging economies around the world, governments will continue responding to the crisis by printing more money. This in turn will benefit safe-haven assets which perform well in inflationary periods.
Bitcoin Better Than Gold
Still, Fitzpatrick explains that although gold is expected to benefit from the deluge of new money entering circulation, the precious metal has unique limitations that do not seem to afflict bitcoin. In his write up, Fitzpatrick notes:
Gold has restrictions such as storage, non-portable, and could possibly be even called ‘yesterday’s news’ in terms of a financial hedge. Bitcoin is the new gold.
Shame this stock doesn't move with bitcoin !!!!!
RR to slowly gain momentum up to £1.25 this week.
My nephew works on the TSX and when we meet up we discuss my share holding, and I asked about amigo, it's not a stock he deals with but does see the reward greater than the risk. Hounddog, in all my 21 years on these sort of platforms I have never heard so much rubbish, you cannot change the SP whatever crap you spread.
Put £1000 worth of shares in my lads ISA (can get at it in 2023) at an average of 7.2p. And I now have 390k shares at a rising average of 8p.
Good luck...I bought in 3 weeks ago and am 60% down !!! Don't be surprised if it just goes lower every day. Lol
I have bought whenever had funds available under £1.30. Average now £1.06 for about £8k worth at current price. Still cheap looking 3 years ahead
You go steady.!
Remind me again, does this stock ever not go down?
Lets make 8p the new floor and push on from there.
Christ how low is this going?
FTSE futures now up 30 points. Not sure why all the room and gloom on here? Is it possible some sold yesterday and want to get back in?
Well they have the 4% fall to cover first and then I would expect the auction to end with a 11% up opening and then see how far it goes. Imho I think 30p could be touched intraday.
They picked up a few today as people got the jitters. When they wake up tomorrow they are sure gonna regret it.
Just on tomorrow clearly a bad day for the markets but will people look for a safe haven in gold stocks?
Don't know why smiley face became question marks?
And my 74p target set back in February is still intact. ??
Well apart from my GGP core holding looks like I have been trapped into another dog share. After 20 years trading you would think I would learnt.
Good job yesterday's news was very good or we would be back under .05. Oh hang on we nearly are. !!!!
Nice and steady will do for me.