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
A note from Citi on BTC with technical analysis calling it to $US318K 

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