How The 70s Gold Market Is Being Shown In Bitcoin Today
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Managing director at the Wall Street conglomerate Citibank, Thomas Fitzpatrick published a report recently that discussed how bitcoin is the 21st-century equivalent to the precious metal of gold. The report highlights institutional clients who have noted the similarities between their gold market of the 70s and bitcoin in today’s world.
The report from Fitzpatrick was brought up on social media over the weekend by the crypto community as it highlights the overall existence of bitcoin has been noted by numerous impressive rallies followed by horrible corrections. In his words, this is “exactly the type of pattern that sustains a long-term trend.“
The report talked about the current state of things in the world such as the coronavirus pandemic and the willingness for many central banks to unleash the “big bazooka“ as many catalysts and triggers could force bitcoin past $20,000 breaking its all-time high.
All over the world, governments have been adamant that they are willing to keep up with the extensive money printing until the GDP and unemployment rate recovers but if you look into the United States, the federal reserve has been Printing in the sums of the dollar and the reaction in the economy has been less than favourable. But for bitcoin, this could be a good thing.
The managing director of the joint corporation further went on to say that the first bull market that bitcoin occurred was in 2010 to 2011. The report highlights that this was reminiscent of the gold market back in the 70s, noting:
“The Bitcoin move happened in the aftermath of the Great Financial crisis (of 2008) which saw a new change in the monetary regime as we went to ZERO percent interest rates (negative in some countries) and massive QE.”