Deutsche Bank: Bitcoin will hit $28,000 this year

Analysts of the largest European bank, researching the cryptocurrency market, predicted a slight increase in the cost of bitcoin.

Deutsche Bank has marked the results of a study, the authors of which claim that by the end of 2022, bitcoin can reach $28,000 due to the strong correlation of the first cryptocurrency with traditional markets. The authors, Deutsche Bank analyst Marion Laboure and Galina Pozdnyakova, suggest an increase in bitcoin of more than 30% compared to the value of BTC on Wednesday, June 29, (about $20,000).

According to analysts, even at this price, Bitcoin will trade at less than half of its November peak. According to experts, BTC has been increasingly correlated with stock indices such as the Nasdaq 100 and S&P 500 since November. Bank strategists predict that the S&P will recover to January levels by the end of the year, and Bitcoin will be able to join it.

“Digital currency is most like diamonds. It is an actively traded asset, unlike gold, which is a stable safe-haven commodity,” analysts say.

The Deutsche Bank report says that bitcoin fell short of the predictions of experts and observers who said that BTC would be a way for investors to save money. Gold, unlike digital assets, held on, keeping the price, analysts say. Experts recalled the largest company in the diamond market, De Beers, which was able to change the perception of consumers about precious stones thanks to advertising:

“By promoting an idea, not a product, they have created a solid foundation for the $72 billion diamond industry that has dominated the past eighty years. What is true for diamonds is true for many other goods and services, including bitcoin.”

Bestselling author of Rich Dad Poor Dad, Robert Kiyosaki, is waiting for Bitcoin to drop to $1,100 before investing in the first cryptocurrency.