Deutsche Bank: bitcoin can rise to $28,000 by year-end
BTC price may recover to $28,000, according to analysts from Deutsche Bank. According to the bank’s experts, the growth may be related to the rally in the US securities market.
Deutsche Bank noted that since November, digital currencies have been increasingly correlated with the Nasdaq 100 and S&P 500 indices. Bank strategists believe that these indicators may recover to January levels by the end of 2022.
At the same time, analysts believe that the arguments in favor of BTC as “digital gold” turned out to be unconvincing. Cryptocurrency has not become a safe haven in falling stock markets, and real gold has “behaved better” in this context.
Deutsche Bank strategists argue that bitcoin is more likely similar to diamonds, a “high-market asset” whose demand is based mainly on marketing. They recalled that in the 1950s, De Beers managed to change the attitude of consumers towards precious stones with the help of advertising.
“By selling an idea, not a product, they have built a solid foundation for the $72 billion a year industry that has dominated the past 80 years. What is true for diamonds is true for many goods and services, including bitcoin,” the experts said.
And Mark Cuban is confident that shifting the focus to decentralized applications and their development outside of finance will help attract additional audiences and stop the fall of the crypto industry. The billionaire suggested that the digital asset market has not yet reached “cheap” prices.
“[The bear market] lasts until the catalyst appears. That trigger could be dapps, or we could sink so low that people would say, “Fuck that, I’ll buy some,” he said.
The businessman predicts the consolidation of different protocols and blockchains, which is typical for “every industry”. In addition, he supported the mechanism for transferring applications and communities, but said that such a network should have “ideas and reasons for using it.”
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