By year’s end, according to Deutsche Bank, Bitcoin might reach $28,000.
Because it has been moving closely with American stocks, Deutsche Bank analysts Marion Laboure and Galina Pozdnyakova forecast that Bitcoin might reach $28,000 by the end of 2022. Since November 2021, the market attitude of cryptocurrencies has been increasingly comparable to that of the Nasdaq 100 and the S&P 500, in particular. The analysts Labourse and Pozdnyakova anticipate that the S&P will return to its January levels. They also draw the conclusion that Bitcoin may follow the S&P recovery to reach $28,000 due to the growing similarity. Instead of comparing digital currencies to gold, Labourse and Pozdnyakova compared them to diamonds. Both properties, they claimed, are heavily marketed. As a result, their long-term price growth ensures that they function as inflation hedges.
According to their prior pronouncements, Deutsche Bank appears to take Bitcoin seriously primarily due to its widespread use. The bank, which has been constantly monitoring Bitcoin sentiment, asserted that by September 2021, Bitcoin would have achieved its long-term goal of being the century’s equivalent of gold. The bank provided three justifications for this assertion:
- People have traditionally placed a lot of money into assets that are not governed by governments.
- Bitcoin’s supply/demand ratio was insufficiently tight to sustain its value over the long term.
- Bitcoin has demonstrated its utility as an inflation hedge and is mostly utilised for investment purposes.
Recently, the German bank discussed how the popularity of Bitcoin has affected its prices. In reference to adoption rates, Deutsche claimed that as soon as appropriate rules were in place, more people would enter the cryptocurrency business. Prices are anticipated to skyrocket as a result, exactly like they did for the preceding 50 years in the diamond business.
Not just Deutsche Bank but other industry titans in finance have identified the link between Bitcoin and American stocks. Early in June 2022, a prominent strategist for Bloomberg Mike McGlone also noted this connection. At the moment, both Nasdaq and Bitcoin had simultaneously broken through important support levels. S&P 500 and Bitcoin, on the other hand, have since reverted to their 100-week averages. McGlone predicted that the price of Bitcoin might reach $100,000 by 2023 by citing rising adoption rates and a dwindling supply in the case of Bitcoin.
Read more: Will the Bitcoin Selloff Continue Now That It Has Reached $19,000? What’s The Next Lowest Point?
