Bitcoin has made some impressive gains in the last couple of months. If you bought at the dip in march 2020 you would now be up over 500 so you might wonder where is this going to stop in this video we’re going to talk about price predictions there are quite some people that made some interesting calls so we’re going to take a look at the numbers and how they got to them the first prediction we’re going to discuss comes from CitiBank a CitiBank analyst says bitcoin could pass 300k by December 2021. senior analyst tom Fitzpatrick wrote this report. It addresses the exponential moves bitcoin made and how it’s similar to the 1970s gold market for those who don’t know president Nixon removed us dollar from the gold standard back in august 1971.
After that, gold’s price started to climb Fitzpatrick, stating that bitcoin is a new gold. We’re on the verge of another structural development but what do we want to know how did he get to some 320 000 us dollars to be precise the exact number that he mentioned is two 318 fifteen points seventy-two dollars well to get to that conclusion he used the following chart it shows the price of a bitcoin. It connects multiple lows and highs to reach 320k by November 2021 ultimately. To make all of this a little bit more readable I’ll project this data on the bitcoin USD chart on training view sadly this chart only goes back to 2011, so we’re going to skip the first two data points. Hence, we see here well late 2011 the price of bitcoin shot up with 54 000 and it reached the first major milestone and surpassed 1000 us dollars after that it started to slow down. We went back to 200 dollars, but then we did another climb of over 9000 per cent to finally reach the peak the previous all-time high which was around 20 000 us dollars so the first time around.
How to Get One Million Dollars
We saw an increase of over 50 000 while the second time we only saw a rise of about ten thousand per cent well this is quite normal the more significant the market cap of bitcoin becomes the more volume you need to make big moves imagine it like this if you have a market cap of one million dollars to get that to ten million dollars is a lot easier than going from one billion dollars to 10 billion dollars you need a lot more money to make it happen, so these previous two claims are exciting but let’s look at his projection he started at December 2018 and then he makes a move of 10 000 to reach 320 000 us dollars at December 2021. an exciting thing about this prediction is that it requires bitcoin to perform equally well as it did in the previous bull run and of course, this is possible, but you have to admit it’s not easy like I’ve mentioned before the more significant the market cap gets the more money you need to make big moves.
So I think that’s a decent argument against it, but on the other hand, there are also quite some arguments that say that a prediction like this could work a big one for this is institutional money. A lot of sources tell us that the current bitcoin rally is fueled by institutional capital. We have to admit if you see the moves that bitcoin made the last couple of months it’s imposing there are multiple reasons for this one being that bitcoin is becoming more mature. It’s been around for more than ten years. It looks like it’s here to stay another one. This continues on the comparison with gold bitcoin is a great way to protect your assets from devaluation printing money an all-time high, so holding on to your money makes. It becomes less valuable people are looking into ways to protect themselves from this inflation and bitcoin is just an excellent solution for this now that bitcoin has been around for ten years people start to believe in. it more and if a lot of retail investors begin to see the value as a replacement of goals in combination with the institutional money this could mean that the price of bitcoin could go up massively.
Start Investing In Bitcoin
I think a lot of people are going to get interested in bitcoin and start investing in it. Institutional interest is also going to grow, but this won’t happen overnight bitcoin has been around for ten years, which is long about other cryptocurrencies. Still, it’s short about other assets so the number that’s mentioned in this prediction 320 000 us dollars I think over time this is possible it’s also possible that bitcoin will be worth more or a lot less. Still, the important thing for this prediction. I guess it’s possible, but it will take quite some time people need to get used to it it needs to grow more and become more mature one more thing.
I want to add to this prediction that the following article 1970 is gold versus bitcoin today and it kind of addresses the same things mentioned by Fitzpatrick’s report only. This one was written in November 2017 and what’s interesting about this is the following charts here. We see the price of gold going from January 1970 until March 1980, and in red we have bitcoin from august 2011 to November 2017 at the end of the graph gold starts to go down rapidly almost vertical.