Bitcoin has exploded in recent weeks, adding to gains through 2020, which has seen its value more than double.
The price of bitcoin this week topped $ 18,000 per bitcoin, causing jubilation among long-suffering bitcoin supporters and leading many to remember the bitcoin bubble of late 2017 – although it is happening without the traditional bitcoin mania of 2017.
Now, a leaked report by Wall Street giant Citibank has found that a senior analyst believes bitcoin could potentially peak at $ 318,000 by December 2021, calling it “21st century gold. “.
“Bitcoin’s entire existence has been characterized by unthinkable rallies followed by painful fixes, the type of model that supports a long-term trend,” wrote Tom Fitzpatrick, global head of CitiFX Technicals at Citibank, in the note to clients institutional. leak on twitter– asks: “Are we at the dawn of another structural development?”
Referring to a chart that shows three bullish runs in Bitcoin over the past decade, the note suggests that the current rally could “potentially peak in December 2021, at the channel high, suggesting a move as high as $ 318,000. [per bitcoin]. “
“Time will tell if we end up seeing such high levels, but the backdrop and price action we are looking at clearly suggests the potential for a major upward move in the next 12-24 months.”
The memo claims that “the case for bitcoin may well be at its most compelling”, referring to bitcoin’s growing reputation as digital gold and “central banks are increasingly discussing the digitalization of currencies” .
Bitcoin is also expected to benefit from the “change in monetary policy and the simultaneous opening of fiscal policy” which could devalue traditional currencies.
This matches a separate note released by Citibank this week that predicts that the coronavirus vaccine rollout and loose monetary policy will weigh on the US dollar through 2021.
“When viable and widely distributed vaccines hit the market, we believe it will catalyze the next lower step in the USD structural downtrend that we expect,” Citi wrote, according to reports. “Given this configuration, it is possible that the dollar’s losses are anticipated, with the USD falling as much as 20% in 2021.”
Bitcoin’s rally this year has been fueled by renewed interest from Wall Street and support from a host of high-profile investors, many of whom have given their support to bitcoin as an emerging hedge against a wave of inflation. which could be looming on the horizon.
In the midst of Bitcoin’s latest rally, the Bitcoin and cryptocurrency community applauded what was seen as a vindication of their much-maligned belief in Bitcoin’s eventual success.
“The dawn of the next great cryptocurrency race may be upon us,” Paolo Ardoino, chief technology officer at Bitfinex, a British Virgin Islands-based bitcoin and cryptocurrency exchange, said via email. . “We are seeing bitcoin prices that haven’t been hit for years. This time, institutional money is infusing bitcoin’s gains.”