Deutsche Bank expects Bitcoin price to return to $28,000

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The price of bitcoin may recover to $28,000 by the end of 2022, according to Deutsche Bank experts. This is reported Bloomberg.

According to the bank’s strategists Marion Labour and Galina Pozdnyakova, the growth will be associated with a rally in the US stock market.

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Experts have noticed that since November, cryptocurrencies have been increasingly correlated with the Nasdaq 100 and S&P 500 indices. They believe that these benchmarks will recover to January levels by the end of the year, stretching Bitcoin along with them.

At the time of writing, the price of the first cryptocurrency has fallen below $20,000 and is testing the $19,000 mark.

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Hourly BTC/USD chart of the Bitstamp exchange. Data: Trading View.

Deutsche Bank strategists believe that the case for bitcoin as “digital gold” has fallen apart. Cryptocurrency did not become a safe haven amid falling stock markets, physical gold “behaved better” in this regard.

Rather, bitcoin is similar to diamonds – a “high-market asset” based mainly on marketing, Lyabur and Pozdnyakova noted. They recalled that in the 1950s, the largest player in the market, De Beers, managed to change consumer attitudes towards precious stones with an advertising campaign.

“By selling an idea, not a product, they have built a solid foundation for the $72 billion a year industry that has dominated the past 80 years. What is true for diamonds is true for many goods and services, including bitcoin,” the experts said.

They also pointed to some of the issues that have gripped the digital asset market in recent weeks, including the financial insolvency of some hedge funds and crypto lenders.

Experts believe that the recovery of the crypto market is hampered by the “lack of common valuation models similar to those that exist in the public capital system.”

“In addition, the crypto market is highly fragmented. The fall could continue due to the complexity of the system,” Deutsche Bank strategists added.

According to Arcane Research researchers, the potential for a decline in the price of bitcoin remains until the level of $10,350.

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Source: Cryptocurrency

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