Deutsche Bank believes Bitcoin could see $28K by year end

Deutsche Bank analysts Marion Labore and Galina Posdonyakova Predict Bitcoin is tightly traded with US stocks and could reach $ 28,000 by the end of 2022.

Since November 2021, cryptocurrencies have grown as well as market sentiment, especially the Nasdaq 100 and S & P 500. Analysts Rables and Pozdonyakova expect S & P to recover to January prices. We also conclude that Bitcoin could reach $ 28,000 following the recovery of S & P due to the growing similarity.

Labourse and Pozdnyakova also likened digital currencies to diamonds rather than gold. They claimed that both assets were very marketed. Therefore, their prices will always rise in the long run and can behave like an inflation hedge.

Analyst said:

By marketing ideas, not products, they laid a solid foundation for the $ 72 billion diamond industry that has dominated over the last 80 years. Diamond applies to many products and services, including bitcoins. Applies to. “

The duo also briefly mentioned market volatility and argued that token prices would stabilize if a standard valuation model was adopted.

Marketing Bitcoin

Based on their previous statement, the popularity of Bitcoin seems to be the main reason why Deutsche Bank takes it seriously.

Closely following sentiment towards Bitcoin, banks claimed that Bitcoin was on track to become gold in the 21st century in September 2021. Banks have given three reasons to support this claim:

1. People have always invested heavily in assets that are not controlled by the government.
2. The balance between supply and demand for Bitcoin was not enough to protect its value in the long run.
3. Bitcoin is used primarily for investment purposes and has proven to be valuable as an inflation hedge.

German banks have recently been working on the impact of Bitcoin’s popularity on prices. Regarding recruitment levels, Deutsche Bank said more people would join the crypto industry if appropriate regulations were implemented. As a result, prices are expected to skyrocket, similar to the diamond industry over the last 50 years.

Bloomberg agrees

Deutsche Bank is not the only financial giant to discover the bond between Bitcoin and US equities.

Mike McGlone, senior Strategist at Bloomberg, pointed out the same relationship in early June 2022. At that time, Bitcoin and Nasdaq were breaking important support levels at the same time. Meanwhile, S & P500 and Bitcoin have since returned to their 100-week average.

McGlone points out the parallelism between the three and states:

“They are all related. [] Once you have confirmed that the foundation is formed, it is just a matter of when, where and where Bitcoin and Ethereum precede. “

In the case of Bitcoin, McGlone mentioned increasing recruitment levels and decreasing supply, saying that Bitcoin’s price could reach $ 100,000 by 2023.