Citi gearing up for Bitcoin Explosion

Citi, one of the leading US financial services firms, has started to consider the possibility of offering Bitcoin services after its clients flood them with queries. It is one of the many banks that has recently warmed to cryptos. Itay Tuchman, Citi’s Global Head of Foreign Exchange, has said that his firm is thinking about entering the BTC market.

When asked about the timeframe of entering the cryptocurrency space, Tuchman said:

“We shouldn’t do anything that’s not safe and sound. We will jump in when we are confident that we can build something that benefits clients and that regulators can support… There are different options from our perspective and we are considering where we can best service clients. This is not going to be a prop-trading effort.”

While stressing that his company hasn’t made any decision yet, Tuchman said that their service will not be “prop-trading”, which is the short form of proprietary trade. Prop trades are done by financial companies with their own funds to make direct gain instead of earning a commission by trading on behalf of their clients. Citi’s Global Head of Foreign Exchange said that the services that the company is considering currently are financing, custodial, and trading options for their clients.

In a leaked Citi report during the fourth quarter of 2020, it was seen that a senior analyst expected the price of Bitcoin to reach as high as US$318,000 by the end of 2021.

Tom Fitzpatrick, the Global Head of CitiFX Technicals, said:

“The whole existence of bitcoin has been characterised by unthinkable rallies followed by painful corrections, the type of pattern that sustains a long term trend.”

He went on to inquire:

“Are we on the cusp of another such structural development?”

Benefit from experienced traders with copy trading on NapBots https://NapBots.com 1 week free trial ! Discover more than 20 strategies dedicated to crypto-currencies, on the most liquid pairs (BTC, ETH …).NapBots allow novices to trade crypto easily and help traders save a lot of time! Bots work tirelessly to scan the markets and navigate through volatility to try to capture profitable trends.