Deutsche Bank Predicts Bitcoin Rising to $28K by Year-End
Bank analysts forecast that Bitcoin fall ‘could continue’.
Bitcoin could reach as high as $28,000 by the end of the year, according to an analysis from Deutsche Bank.
“The crypto freefall could continue because of the system’s complexity” highlights the bank’s analysts Marion Laboure and Galina Pozdnyakova. However, the analysis, reported by Bloomberg, suggests a more-than 30% rally from the coin’s Wednesday trading level of around $20,000, a price-point that would leaves the token trading at less than half its November peak.
Bitcoin failed to live up to predictions by pundits and market-watchers that it would prove to be an investor refuge, posting losses of more than 50% this year. Since November, cryptocurrencies have been increasingly correlated to benchmarks like the tech-heavy Nasdaq 100 and the S&P 500.
Digital coins have underperformed stocks, bonds and commodities during the market-wide rout as the removal of excess liquidity by major central banks created downward pressure on their prices. However, the bank’s strategists predict the S&P will recover to January levels by year-end and Bitcoin may come along for the ride. “Stabilizing token prices is hard because there are no common valuation models like those within the public equity system. In addition, the crypto market is highly fragmented,” the analysts said.