More on that Citi call for Bitcoin to skyrocket above $US300,000
A note from Citi on BTC with technical analysis calling it to $US318K
Its a long note, but in summary:
Bitcoin has been characterised by unthinkable rallies followed by painful corrections (The type of pattern that sustains a long term trend.)
- major rally ... 2010 into the 2011 high followed by a deep correction ... was very reminiscent of what happened with Gold as it was allowed to float in the early 1970's after 50 years of trading in a $20-$35 range
- That period with regard to the Gold price was a structural change in the modem day monetary regime as it broke the orthodox relationship between FIAT currencies and Gold ushering in a World of fiscal indiscipline, deficits and inflation
- The Bitcoin move happened in the aftermath of the Great Financial crisis which saw a new change in the monetary regime as we went to ZERO per cent interest rates (negative in some countries) and massive QE
- Are we on the cusp of another such structural development?
Citi goes on to argue we are.
And that it is good for gold, but gold is constrained and:
- Bitcoin is the new Gold
- an asset with limited supply
- It is digital
- It moves across borders easily and ownership is opaque. (That last point is. I believe. very relevant. )
Citi go on, but to jump to their price forecast conclusion:
- this move could potentially peak in December 2021, at the high of the channel, suggesting a move as high as $318k. Improbable though that seems it would only be a low to high rally of 102 times (the weakest rally so far in percentage terms) at a point where the arguments in favour of Bitcoin could well be at their most persuasive ever