Bitcoin could reach $ 28,000 by the end of the year

Analysts at Deutsche Bank estimate that bitcoin could reach $ 28,000 by the end of the year as it is closely traded with US stocks.

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Bitcoin at $ 28,000 by the end of the year?

Deutsche Bank analysts Marion Labore and Galina Pozdnyakova predict: Bitcoin could reach $ 28,000 by the end of 2022.

Notice

Crypto-currencies have come closer to the Nasdaq 100 and S&P 500 in terms of market sentiment since November 2021. Laborse and Pozdnyakova analysts expect the S&P to return to its January levels. Based on the growing similarities, they are also of the opinion that Bitcoin could follow an S&P rally and reach $ 28,000.

Laborse and Pozdnyakova compare digital currencies to diamonds instead of gold. They argue that both assets are heavily marketed.

Therefore, their prices will continue to increase over the long term, allowing them to behave like inflationary hedges. The Analysts:

“By marketing an idea, not a product, they have laid a solid foundation for the $ 72 billion annual diamond industry that has dominated for eighty years. What is true of diamonds is also true of many other goods and services, including bitcoins. ”

The duo also cites market volatility, arguing that signal prices will stabilize once standard valuation models are introduced.

Bitcoin Marketing

Based on their previous statements, the demand for Bitcoin seems to be the main reason Deutsche Bank is taking it seriously.

The bank is closely monitoring Bitcoin ‘s outlook, claiming in September 2021 that Bitcoin is on track to become 21st century gold. The bank provided three reasons to support this claim:

People have always invested heavily in assets that are not controlled by governments.
Bitcoin’s supply and demand balance is tight enough to protect its value in the long run.
Bitcoin is primarily used for investment purposes and has proven to be an inflation hedge.

In addition, Deutsche Bank recently looked at the impact of Bitcoin’s popularity on its prices. Regarding the adoption of Bitcoin, Deutsche Bank stresses that more people will enter the crypto industry as soon as regulations are in place.

As a result, prices are expected to skyrocket. Just as the diamond industry has done for the last 50 years.

Bloomberg agrees

Deutsche Bank is not the only financial giant that has seen the link between Bitcoin and US stocks.

Bloomberg’s chief strategist Mike McGlone also hinted at this relationship in early June 2022. Back then, Bitcoin and Nasdaq broke through their main levels of support at the same time. The S&P 500 and Bitcoin have returned to their moving average 100 weeks ago.

McGlone focuses on the parallels between the three, explaining:

“It simply came to our notice then. […] If we see the basis for what is to happen, it is only when and where, Bitcoin and Ethereum should come out on top. ”

In the case of Bitcoin, McGlone cites the increase in acceptance and declining supply for his thesis that the price of Bitcoin could reach $ 100,000 by 2025.

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Text credit: Cryptoslate