The price of Bitcoin could hit $318,315 by the end of 2021 thanks to its consolidation in the status of digital gold in the 21st century, Tom Fitzpatrick, managing director of Citibank, has said.
Crypto Briefing has reported that Fitzpatrick has drawn several analogies between the 1973 rejection of the Bretton Woods Agreement, signed in 1944, and BTC. This marked the split of the ties between the US dollar and gold.
In 1971, US president Richard Nixon broke this link by creating the fiat regime we have now.
Fitzpatrick has remembered how much gold grew over the next 50 years. He compares gold and Bitcoin based on monetary inflation and dollar devaluation:
"Bitcoin move happened in the aftermath of the Great Financial crisis (of 2008) which saw a new change in the monetary regime as we went to ZERO percent interest rates."
Fitzpatrick believes this explains the 555-fold increase in the price of Bitcoin during the first bull cycle from 2011 to 2013.
According to the expert, the coronavirus pandemic and the related monetary and fiscal actions of the government create the same market environment as gold in the 1970s. Authorities in developed countries have given a clear signal they will keep printing money until GDP and employment figures go back to normal levels.
Fitzpatrick forecasts by December 2021 the price of Bitcoin will increase 102-fold to $318,315, up from a low of $3,200 back in 2018.
Fitzpatrick has also suggested gold could hit $4,000-8,000.
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