Deutsche Bank Predicts Bitcoin Rising to $28K by Year-End – Warns ‘Crypto Free Fall Could Continue

Deutsche Bank has predicted that bitcoin’s price will reach $28,000 by year end, Bloomberg reported Wednesday. This was based on an analysis by Marion Laboure, senior economist and market strategist at the bank, and Galina Pozdnyakova, research analyst.

Their analysis shows that bitcoin’s current price of $203,329 will rise 38% compared to its current price. This is due to how closely BTC has been trading against U.S. stocks.

They also noted that cryptocurrencies are correlated with benchmarks such as the tech-heavy Nasdaq 100 or the S&P 500, since November. The S&P 500 has fallen 21% since the start of the year. Deutsche Bank strategists anticipate that the index will recover to January levels by year’s end.

According to the publication, Laboure and Pozdnyakova prefer bitcoin to diamonds over gold. They referred to the story of De Beers, which was a large company in the diamond industry who was able change consumers’ perceptions about diamonds by its advertising campaigns.

Analysts explained that they had built a strong foundation for the $72 million-a-year diamond market by marketing an idea, rather than a product.

The same applies to diamonds as it is for other goods and services, such as bitcoins.

Deutsche Bank analysts also spoke out about recent turmoil in crypto, including problems at certain crypto lenders like Celsius Network.

“Stabilizing token prices can be difficult because there is no common valuation model like the one used in the public equity system. They also warned that the crypto market is fragmented.

Because of the complexity of the system, it is possible that crypto-free fall will continue.

Laboure stated previously that she could “potentially” see bitcoin becoming the 21st century’s digital gold. She emphasized that ‘people have always sought assets that weren’t controlled by governments. According to Laboure, “Gold has played this role for centuries… Let’s not forget the fact that gold was volatile historically.