Deutsche Bank predicts bitcoin will return to $28,000
The price of bitcoin may recover to the level of $28,000 by the end of 2022, according to experts at Deutsche Bank. It is reported by Bloomberg.
According to the bank strategists Marion Laboure and Galina Pozdnyakova, the growth will be associated with the rally of the U.S. stock market.
The experts pointed out that since November, cryptocurrencies have been increasingly correlated with the Nasdaq 100 and S&P 500 indices. They believe these benchmarks will recover to January levels by the end of the year, pulling bitcoin behind them.
As of this writing, the price of the former cryptocurrency has fallen below $20,000 and is testing the $19,000 mark.
Deutsche Bank strategists believe that the arguments in favor of bitcoin as “digital gold” have fallen apart. Cryptocurrency has not become a safe haven amid falling stock markets, physical gold has “behaved better” in this regard.
Bitcoin is more like diamonds, a “high-market asset” that relies heavily on marketing, Lyabur and Pozdnyakova noted. They recalled that in the 1950s, De Beers, a major market player, was able to change consumer attitudes to gems with an advertising campaign.
“By selling an idea rather than a product, they created a solid foundation for a $72 billion-a-year industry that has dominated for the past 80 years. What is true for diamonds is true for many products and services, including bitcoin,” experts said.
They also pointed to some of the problems that have plagued the digital asset market in recent weeks, including the financial failure of some hedge funds and cryptocurrency lenders.
Experts say the recovery of the crypto market has been hampered by the “lack of common valuation models similar to those in the public capital system.”
“In addition, the crypto market is highly fragmented. The fall may continue because of the complexity of the system,” added strategists at Deutsche Bank.
Recall, according to researchers Arcane Research, the potential to reduce the price of bitcoin remains up to $ 10,350.
