Following the playbook created by Bitcoin and cryptocurrency believers in the past few years: Deny all ties to the asset class at first, try to disallow clients from banking crypto profits to their accounts then, and wholeheartedly embracing the sector later.
Tom Fitzpatrick, a veteran fund manager and executive at the US bank, published a client note last week that compared Bitcoin's rise to the one seen in the gold market back in the 1970s.
He even predicted a price that would incite stock-to-flow model believers: That of Bitcoin reaching a six-figure price as early as next year.
"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 percent interest rates," wrote Fitzpatrick in the note.
The analyst had a positive take on Bitcoin's infamous price corrections, which have seen the pioneer cryptocurrency drop by as much as 40% in a single day.
"While Bitcoin may be subject to more regulatory constraints going forward it is a natural store of"money" to avoid this.
The bank analyst's $318,000 price target for Bitcoin was met by both accolades and skepticism among crypto circles on Twitter.
In May 2016 I met Citibank chief economist Willem Buiter at a conference in Oxford & explained bitcoin to him as he shouted nocoinerisms.
I offered to bet him bitcoin will outperform citi over 5 years.
This is the same bank that urged people to sell Bitcoin when it was trading under $400 in 2013.
Why a Citibank analyst is calling a $318k target for Bitcoin
Published on Nov 16, 2020
by Cryptoslate | Published on Coinage
Mentioned in this article
Another mainstream company is seeking approval to invest in crypto
Anthony Scaramucci's investment firm, SkyBridge, seeks approval from the SEC to invest in crypto.
COVID-19 popularized decentralization, but blockchain may not catch on
On Nov. 9, drugmaker Pfizer announced that its COVID-19 vaccine is 90-plus percent effective, and even though it may be premature to proclaim the pandemic's end - as the virus continues to rage in the United States and Europe - once can at least speculate: Where will blockchain adoption stand when the crisis abates?
Bitcoin hits new 2020 high at $16.7K -Traders expect bigger breakout
The price of Bitcoin hit a new yearly high at $16,717 on Binance.
The next big crypto market could be fantasy sports, says Messari
As "Digitally native" ecosystems like esports continue to synergize with blockchain technology, industries like fantasy sports could be primed for mass adoption, says digital research firm Messari.