Bitcoin’s Historical Performance: A Recap
Bitcoin has had a rollercoaster ride, hasn’t it? Take a look back at its price journey over the years, full of exuberant highs and gut-wrenching lows. From a mere concept in 2009 to a digital gold standard, it’s clear that BTC loves a good rally, as anyone who has ever held on during a market dip will attest!
Understanding Bull Runs
If you’re feeling dizzy from all the ups and downs of Bitcoin, you’re not alone. Citibank’s managing director Tom Fitzpatrick points out that every major bullish wave in Bitcoin has been getting longer. We’re talking about runs that make marathons look like sprints:
- 2010–2011: 10 months of pure excitement
- 2011–2013: 2 years of anticipation
- 2015–2017: A full 3-year affair!
One might argue that Bitcoin is like a celebrity; it thrives in the spotlight and grows its fan base with each passing year. But, like any star, it also has its moments of drama – enter the painful corrections after those bull runs.
The Current Bull Run: What’s Next?
According to Fitzpatrick, we are currently nestled in a bull run that kicked off in early 2019 and may last for an unprecedented four years. A four-year bull run? Sounds like a college degree of price increases! With this context, it’s easy to see why some are whispering about a jaw-dropping prediction of $318,000 for Bitcoin by December 2021.
Citi’s Bold Prediction Explained
Now, before you scoff at the idea of Bitcoin reaching a price tag that rivals a luxury car, consider this: Fitzpatrick is not just throwing darts at a board. He’s carefully charted Bitcoin’s climb and delved into the factors driving demand. He mentions that the last two bull runs saw corrections of stable length—around 12 months—exactly the kind of consistency that makes charts worth their paper.
In fact, Fitzpatrick claims that a $318,000 price tag would only represent a 102 times rally over the lowest prices so far—considered the weakest growth in percentage terms.
Factors Influencing Bitcoin’s Future
A variety of forces could propel Bitcoin to new heights, not the least of which is the changing monetary policy by the Federal Reserve. With an influx of new money post-pandemic, Bitcoin could very well be strong in the power department. Its value could rise as inflation concerns leave investors scratching their heads for safe havens.
But let’s be honest, making financial predictions can feel like predicting the weather in Colorado – wait five minutes, and it changes. Until we hear more from Citibank on the report, keep your fingers crossed, and your wallets ready because the crypto world is anything but boring!
