We were excited recently by Tom Fitzpatrick, Global Head of Citibank Citifxtechnicals Product, with the incredible forecast he made in his report. Tom Fitzpatrick said he expects the price to rise to $318,000 by the end of 2021, calling the 21st century gold for bitcoin.
It’s not uncommon to make extreme predictions for bitcoin prices, but hearing such predictions from a global player like Citibank excited all of us. Especially after paypal's definition of bitcoin as a payment tool, institutional investors started to mention their names with bitcoin, and everyone started to wonder which of these predictions is approachable and which is impossible.
The truth is we have to admit that nothing is impossible when the bitcoin is on the table. Because we have a limited presence. The situation would be the same even if this was something else and not bitcoin. The price of a limited asset varies according to those who demand it. If the demand is too high and existence is too low, those holding this asset have the audacity to ask for more to sell their owned assets. However, if there is no demand for existence of these assets, they can have to try to find a buyer with lower prices for their owned assets. In fact, this may sometimes cause prices to turn negative. During the Covid-19 Pandemic, Oil prices turned negative for a while, showing that we should be prepared for anything when we are talking about prices.
Lets go back to bitcoin, it looks really possible for the price to rise to $318000, but it is very difficult to say that this will happen in 2021. Because, in order to predict this, we need to know to how many of institutional investors can add an innovative investment to their traditional portfolios. Investors should understand what Bitcoin means literally to take risk and have some Bitcoin on their portfolios. In order for all investors to start putting bitcoin in their portfolios, I think the prices that rise and fall excessively should lose their volatility and become more stable over time. This will make it possible for prices not to experience excessively drastic corrections over time, even if prices rise excessively, just like gold prices. Thus, prices may even exceed the level of 318 thousand dollars one day.
