Deutsche Bank Predicts Bitcoin Rising to $28K by Year-End — Warns ‘Crypto Free Fall Could Continue’ – Markets and Prices Bitcoin News

Deutsche Bank predicts that bitcoin’s price will rise nearly 40% to $28K, from its current level by year end. The bank’s analysts also warned that “the crypto free fall could continue.”

Deutsche Bank’s Bitcoin Price Prediction

Deutsche Bank has reportedly predicted that the price of bitcoin will rise to $28,000 by year-end, Bloomberg reported Wednesday, citing an analysis by the bank’s senior economist and market strategist Marion Laboure and research analyst Galina Pozdnyakova.

Based on their analysis, bitcoin’s price will rally 38% from the current price of $20,329 given how closely BTC has been trading with U.S. stocks.

They noted that cryptocurrencies have been correlated to benchmarks like the tech-heavy Nasdaq 100 and the S&P 500 since November. The S&P 500 is down 21% since the beginning of the year. Deutsche Bank strategists anticipate that the index will recover to January levels before the end of this year.

According to the publication, Laboure and Pozdnyakova prefer bitcoin to gold over diamonds. De Beers, an industry leader in diamonds and advertising that managed to influence consumer perceptions of diamonds via its advertisements was mentioned.

“By marketing an idea rather than a product, they built a solid foundation for the $72 billion-a-year diamond industry, which they have dominated for the last eighty years,” the analysts detailed, elaborating:

What’s true for diamonds is true for many goods and services, including bitcoins.

Deutsche Bank researchers also spoke out about recent troubles in crypto, such as difficulties at Celsius Network and some crypto lenders.

“Stabilizing token prices is hard because there are no common valuation models like those within the public equity system. In addition, the crypto market is highly fragmented,” they opined, warning:

The crypto free fall could continue because of the system’s complexity.

Laboure previously said she could “potentially” see bitcoin becoming “the 21st-century digital gold,” emphasizing that “People have always sought assets that were not controlled by governments.” The economist noted: “Gold has had this role for centuries … Let’s not forget that gold was also volatile historically.”

Do you agree with Deutsche Bank’s analysis? Leave your comments below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.