Bitcoin Could Climb to $28K by 2022’s End, Deutsche Bank Analysts Suggest
Analysts at Deutsche Bank – Marion Laboure and Galina Pozdnyakova – argued that the cryptocurrency market is “highly fragmented,” and its decline could continue in the near future. However, they believe bitcoin might tap $28,000 by the year’s end, assuming it keeps its close correlation to US stocks.
BTC at $28K by Christmas
The past several weeks have not been pleasant for the digital asset market as the majority of assets lost a significant chunk of their value. Bitcoin, for one, dropped from over $30,000 to below $20,000 in less than half a month.
The latest people to address the industry’s drawback were Deutsche Bank’s analysts – Marion Laboure and Galina Pozdnyakova. The duo opined that stabilizing prices of a certain digital asset takes time because “there are no common valuation models like those within the public equity system.” They further described the crypto market as a “highly fragmented” niche that could crash even more in the months to come:
“The crypto freefall could continue because of the system’s complexity.”
Nonetheless, Deutsche Bank’s experts outlined that bitcoin’s price charts have been moving quite closely with US stocks. Laboure and Pozdnyakova expect the S&P 500 to reach its January levels by the end of 2022, and they suggested that the primary cryptocurrency could follow suit. If that comes true, BTC could surge to and even beyond $28,000.
Last week, the American billionaire Mark Mobius classified the digital asset as a “measure of investor sentiment,” claiming that bitcoin’s price is a leading indicator that could reveal the upcoming movements of the Dow Jones index:
“Bitcoin goes down, the next day the Dow Jones goes down. That’s the pattern you get. That shows that bitcoin is a leading indicator.”
The Deutsche Bank analysts also gave their two cents on the popular comparison between bitcoin and gold. Unlike many others, they maintained that the crypto asset is not similar to the precious metal but to diamonds:
“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. What’s true for diamonds is true for many goods and services, including Bitcoin.”
Any Other Suggestions?
Unlike the aforementioned forecast, Gareth Soloway – President of InTheMoneyStocks – stated that bitcoin could further crash to $10,000 in the following months. His prediction should be taken seriously since he was among the few individuals who outlined a bearish scenario for the asset when it was trading at $50-60,000 last year.
On the other hand, the British cryptographer Adam Back reiterated his position that bitcoin could hit the $100,000 milestone before the end of 2022. Contrary to the analysts from Deutsche Bank, he expects the asset to decorrelate from stocks and traditional finance markets.
