The whole market is in green, bitcoin continues to grow, mainly under the influence of fundamental factors. All the leading altcoins are growing as well. How long will the rally last?
The BTC price came close to $17.5K. Very little is left before the historical maximum of $20K. For 2.5 months, the growth was almost 70%. At the same time, the king of cryptocurrencies powerfully led the growth of the entire market, although it is dominating all the time. Bitcoin Dominance is now over 65%. Market capitalization is almost $484 billion. The market has grown by more than 50% since September, from the level of $321 billion.
Analysts point to great stability in the growth of bitcoin and the market. This gives reason to make very optimistic forecasts. Citibank analyst Tom Fitzpatrick is confident that Bitcoin will show explosive growth by the end of 2021. According to him, by December 2021 BTC will cost $318K! This is an incredible forecast, which is nevertheless announced by a serious professional and backed up by fundamental and technical factors.
Fitzpatrick draws attention to the fact that bitcoin proves more and more that it is “the clear winner in a world that copes with the economic and fiscal impacts of the pandemic”… Citibank analyst cites the fact that according to his observations, governments no longer intend to impose strict fiscal measures. This means that fiat currencies will inevitably depreciate. Investors have already noticed how convenient it is to store value in bitcoin compared to gold, and it is unlikely they return to this metal. As a result, gold will also drop along with fiat money. And bitcoin will continue to grow.
Fitzpatrick summarized the benefits of bitcoin as a safe haven asset:
“Bitcoin is an asset with limited supply. It is digital … It moves across borders easily and ownership is opaque … The huge fiscal deterioration of today has a cost in the future, which means at some time in the future the money needs to be found. While bitcoin may become subject to more regulatory constraints going forward, it is a natural store of ‘money’ to avoid this.”
In addition, the trend towards the launch of central bank digital currencies also benefits BTC. According to Fitzpatrick, bitcoin in relation to CBDC will be the same as gold is in relation to fiat currencies.
The analyst does not consider his forecast of an incredible take-off to be fantastic. Indeed, even in much worse conditions, BTC grew in the past: from 2011 to 2013 it grew 555 times, from 2015 to 2017 – 120 times.