Deutsche Bank analysts predict that bitcoin (BTC) will repay to $ 28,000 by December 2022 as the cryptocurrency market continues to struggle in gloomy times.
Bitcoin and the wider cryptocurrency markets have had a tough six months, with the value of BTC in particular, after its worst quarter in 10 years. Macroeconomic conditions around the world have played a role, with markets stagnant and fears of inflation pushing the traditional stock markets and their crypto counterparts to painful lows.
A report from Deutsche Bank analysts Marion Laboure and Galina Pozdnyakova offers an interesting insight into the medium – term outlook for BTC. According to them, the cryptocurrency markets have been reflected by the movements of the Nasdaq 100 and S&P 500 since the end of 2021.
The duo believes that the S&P will bounce back to its January levels and that a correlation of bitcoin to the index by mid-202 could lead to a 30% increase in value from current levels. This would allow BTC to reserve $ 28,000 to get.
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The prediction may quell some of the swirling fear and uncertainty in space, but the recovery in cryptocurrency markets is less clear. Laboure and Pozdnyakova noted the recent collapse of the Terra ecosystem and the Celsius debacle and their impact on the markets as exacerbating factors:
“It is difficult to stabilize voucher prices as there are no common valuation models like those in the public equity system. In addition, the cryptocurrency market is highly fragmented. The free fall of cryptocurrencies could continue due to the complexity of the system ”.
A separate publication from JPMorgan tells investors that the crypto ecosystem may already be recovering. As companies like hedge fund Three Arrows Capital became insolvent after failing to meet margin calls from investors amid the crash in the crypto market, other industry players backed the ecosystem:
“The current cycle of deleveraging may not be very long as the strongest balance sheet crypto entities are now emerging to keep the infection alive and venture capital funding has been retained, an important source capital for the ecosystem, in a healthy way. speed in May and June. ”
The publication also highlights the relatively high volume of venture capital investments in cryptocurrency companies over the past two months – up to $ 5 billion. This represents an increase of $ 3.4 billion over the same period in 2021.