Kevin Helms
An Austrian economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Deutsche Bank predicts Bitcoin will rise to $ 28,000 by year-end – warns ‘cryptocurrency decline could continue’ – Markets and prices Bitcoin news
Deutsche Bank has predicted that the price of bitcoin will increase almost 40% from the current level to $ 28K by the end of the year. The bank’s analysts also warned that “the crypto-free fall may continue.”
Deutsche Bank’s Bitcoin Price Prediction
Deutsche Bank has reportedly predicted that the price of bitcoin will rise to $ 28,000 by the turn of the year, Bloomberg reported on Wednesday, citing an analysis by the bank’s senior economist and market strategist Marion Labor and analysis analyst Galina Pozdnyakova.
Based on their analysis, the price of bitcoin will rise 38% from the current price of $ 20,329 given how closely BTC has traded in US stocks.
They noted that cryptocurrencies have been correlated with benchmarks such as the technology-heavy Nasdaq 100 and S&P 500 since November. The S&P 500 is down 21% since the beginning of the year. Deutsche Bank strategists expect the index to return to January levels by the end of the year.
Labor and Pozdnyakova compare bitcoin to diamonds, rather than gold, the publication said. They referred to the story of De Beers, a large company in the diamond industry that was able to change consumers’ perceptions of diamonds through advertising.
“By marketing an idea instead of a product, they built a solid $ 72 billion a year foundation for the diamond industry, which they have dominated for the past eighty years,” analysts said.
What is true of diamonds is true of many goods and services, including bitcoins.
Deutsche Bank’s research analysts also recently discussed the turmoil in the crypto area, including problems with some crypto borrowers such as the Celsius Network.
“Stabilizing token prices is difficult because there are no common valuation models like those within the public equity system. In addition, the crypto market is very fragmented,” they said, warning:
The crypto-free fall may continue due to the complexity of the system.
Labor said earlier that she “potentially” could see bitcoin become “the digital gold of the 21st century”, stressing that “people have always searched for assets that were not controlled by governments.” The economist remarked: “Gold has had this role for centuries … Let us not forget that gold was also historically unstable.”
Do you agree with Deutsche Bank’s analysis? Let us know in the comments section below.
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