Deutsche Bank believes that Bitcoin could move higher by the end of the year if traditional markets recover. Analysts at Deutsche Bank analysed the cryptocurrency market and believe that there is a possibility for the market to recover 30%. This could happen if Bitcoin (BTC) remains correlated to the S&P 500 during the next months.
Deutsche Bank Analysts See Bitcoin Reaching $28,000 by December
Bitcoin could hit $28,000 by the end of this year according to analysts at Deutsche Bank. This comes after Bitcoin experienced one of the strongest bear markets in history as its price moved from $69,000 to $18,000 a few weeks ago.
Another thing that we should take into consideration is that Bitcoin has also been affected by macroeconomic events, including interest rate hikes, higher inflation and a recession. It is worth pointing out that due to this reason, Bitcoin has followed traditional markets very closely.
According to Deutsche Bank analysts Marion Laboure and Galina Pozdnyakova, Bitcoin could continue to mirror both the S&P 500 and the Nasdaq in the coming months. If that happens and the correlation persists, then there could be a rebound in the market that could push Bitcoin 30% higher by the end of the year. Therefore, BTC could be traded once again above $28,000.
It is worth taking into consideration that the analysts acknowledge that the crypto market is complex, which could make the $28,000 target difficult to reach. For example, earlier this year, the Terra (LUNA) ecosystem imploded and it pushed most virtual currencies downward.
In the future, other tokens could also affect the valuation of the whole crypto industry, which could have a negative impact on the whole market. Therefore, there are many things that the analysts consider that could happen with the market.
About the complexity of the cryptocurrency market, they mentioned:
“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 crypto freefall could continue because of the system’s complexity.”
Another thing that happened this year and that had a strong impact on the market was related to Celcius blocking withdrawals due to a lack of funds to pay investors that deposited their funds on this platform. Additionally, Three Arrows Capital, one of the largest crypto venture investment firms has also failed to meet margin calls from investors.
Therefore, the cryptocurrency market is very complex and everything can happen. We have seen digital assets move higher at very fast rates and we have also experienced situations in which the market entered bear trends that lasted for many years. That means that investors should be prepared for what could happen to Bitcoin in the future, even if it falls to $10,000.
According to CoinMarketCap, Bitcoin is now being traded at $19,300 and it has a market capitalization of $369 billion.