Citibank analyst: Bitcoin – $ 318,000 at the end of 2021
Financial analyst of the American Bank Citibank Thomas Fitzpatrick, based on his calculations, has concluded that Bitcoin by December 2021 will cost 318,000 US dollars.
Bitcoin will “likely” just continue to grow, that’s it
Based on its s2f (stock-to-flow ratio) model, the analyst believes that by December 2021, Bitcoin may well rise to a range of $100,000 to $ 288,000. However, this scenario is causing some skepticism among crypto finance experts.
It is obvious that senior analyst is not subject to doubt. In a report intended only for the Bank’s institutional clients, it sets an even higher market target.
“The entire existence of Bitcoin has been characterized by unimaginable rallies, followed by painful corrections (a type of model that supports the long-term trend),” writes the head of CitiFXTechnicals at Citibank.
Thus, Fitzpatrick draws a parallel with gold to confirm his hypothesis about a strong jump in the price of PTS: “This surge, when it became widespread, was very similar to what happened to gold in the early 1970s, after 50 years of trading”.
Based on the weekly chart of Bitcoin and technical analysis (TA) of previous highs and lows, the expert of the American Bank determines the goal for BTC at $ 318,000 by December 2021.
This hypothesis is also supported by the popular expert PlanB. However, like the PlanB forecast, the Citibank analyst’s hypothesis is equally skeptical. On Twitter, ClassicMacro recalls that Thomas Fitzpatrick is used to inflated forecasts.
A million-dollar dispute
Last week, two crypto investors declared their willingness to accept a million-dollar bet on that they consider highly unlikely that Bitcoin would reach the $ 100,000 to $ 288,000 mark by the end of the specified timeframe.
Ari Paul from BlockTower Capital said he is willing to pay up to $ 3 million against the hypothesis of a PTS above $ 100K. But isn’t this an excessive risk? No, according to Paul, since no one is going to put that kind of money on such a scenario.
Predictions and other predictions about Bitcoin are not without drawbacks. John McAfee even went so far as to predict a price of $ 1 million. He has since assured that it was just a joke.
Other analysts and investors take a more serious risk of forecasting. According to Adam Beck from Blockstream, the total capitalization of the cryptocurrency can grow to $ 1 trillion within two years.
The investment Director of crypto hedge Fund Arcane Assets is also willing to invest money to demonstrate that Bitcoin’s stock-to-flow model doesn’t work. Eric wall bets 1 million $ on the failure of such a prediction:
“I bet $ 1,000,000 that the s2fx model will collapse in less than 5 years,” he tweeted, in response to PlanB’s tweet. A simple joke in the social networks?
Not at all, insists Eric wall. “This is not a joke. I’m willing to transfer the money to a third party that we both trust”. Thus, according to him, at the latest within 5 years, Bitcoin will not reach even 50% of the goal of the S2F model.
Will PlanB accept the challenge? He doesn’t say anything about it. One thing is clear: he is unshakeable in his opinion . “People ask me if I believe in my forecast. To be clear: not for a moment do I doubt that Bitcoin S2FX is correct, and that It will reach 100-288 thousand dollars before December 2021, ” he says.
According to the analyst, the continued reduction in the supply of BTC will directly affect its cost, based on the principle of scarcity. The number of coins is really not unlimited, and there can’t be more than 21 million BTC.
Today, there are more than 18 million of them. However, the coin limit will be reached before 2140. Is this enough to make the S2F model trustworthy?