Posted 9 months ago | by @devadmin
A Citibank executive stated in a leaked report titled: “Bitcoin: 21st Century Gold” that he believes BTC could reach as high as $300K by next December, potentially defying its cycle.
Citibank bitcoin technical analysis.
Target: Moon. pic.twitter.com/prB1YjVNhX
— Alex (@classicmacro) November 13, 2020
The report was sent out to Citibank’s institutional clients urging them to buy Bitcoin, authored by Thomas Fitzpatrick, global head of the company’s CitiFXTechnicals market insight.
Because the report was private it was actually leaked on Twitter by user ClassicMacro, Coindesk reported.
Fitzpatrick is so bullish on the number one cryptocurrency by market cap he said that Bitcoin’s 2010-2011 “exponential move” is “very reminiscent” of the 1970 gold market. Gold previously experienced 50 years of a constricted $20–$35 price range before a breakout occurred after a change in fiscal policy by the Nixon administration in 1971 as Bitboy Crypto has reported prior in the video below. This was due to factors prior like the fact in 1834, the United States fixed the price of gold at $20.67 per ounce, where it remained until 1933. However, the U.S. wasn’t on the gold standard for its currency until 1879 which was “officially” ended by later administrations.
It all started on June 5, 1933, President Franklin Delanor Roosevelt (FDR) signed a bill ending the Gold Standard. The gold standard was a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold. However, numerous bank failures during the Great Depression of the 1930s frightened the public into hoarding gold.
Prior to April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 confiscated and turned in for U.S. dollars. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1st for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates.
In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.
The government held the $35 per ounce price until August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. In fact, gold became illegal to own for three years, until in 1974, President Gerald Ford signed legislation that permitted Americans again to own any gold.
There’s one more key thing to note and this is going to spark conspiracy. It’s well known by now that President John F. Kennedy (JFK’s) murder was a sophisticated assassination plot with the release of sealed files a few years ago.
But JFK actually sought to take power away from the Federal Reserve and give it back to the U.S. Treasury with Executive 1110 some speculate this is what got him killed. Again that’s pure speculation.
The missing link to this however is going to spark even more theories. On March 19, 1968, President Lyndon B. Johnson who took over after JFK was killed, signed a bill eliminating the “gold backing” for Federal Reserve notes. Prior to the removal of the gold cover, each Federal Reserve Bank had been required to hold a gold certificate reserve of not less than 25 percent against its Federal Reserve note liability.
So, the trading between $20-35 was actually gold being held back by government regulations much like how Bitcoin has been in the modern-day.
Fitzpatrick further said that a decoupling of gold from fiat currencies, the COVID-19 pandemic, and the desire for central banks to pursue aggressive quantitative easing policies could lead to future explosive price growth in Bitcoin. However, what the analyst missed is that Bitcoin itself is decoupling from gold.
Unfolded reports a chart by Crypto Compare showing the obvious decoupling between gold and Bitcoin. It seems that numerous instiutions are now bullish on the potential for Bitcoin and cryptocurrenices with JP Morgan also stating that its own institutional clients are seeing Bitcoin act as an alternative to gold, Bitboy Crypto reported.
Bitcoin is currently trading at [FIAT: $16,792.57] UP +5.6% in the last 24 hours according to Coingecko at the time of this report.