Deutsche Bank Predicts Bitcoin Rising to $28K by Year-End

Deutsche Bank has reportedly predicted that the price of bitcoin will rise to $28,000 by year-end, Bloomberg reported Wednesday, citing an analysis by the bank’s senior economist and market strategist Marion Laboure and research analyst Galina Pozdnyakova.

Based on their analysis, bitcoin’s price will rally 38% from the current price of $20,329, given how closely BTC has been trading with U.S. stocks.

They noted that since November, cryptocurrencies had been correlated to benchmarks like the tech-heavy Nasdaq 100 and the S&P 500. 

The S&P 500 has been down 21% since the beginning of the year. The Deutsche Bank strategists expect the index to recover to January levels by the end of the year.

Laboure and Pozdnyakova liken bitcoin to diamonds rather than gold, the publication conveyed. 

They referenced the tale of De Beers, a major company in the diamond industry that was able to change consumer perception about diamonds through advertising efforts.

“By marketing an idea rather than a product, they built a solid foundation for the $72 billion-a-year diamond industry, which they have dominated for the last eighty years,” the analysts detailed, elaborating:

The Deutsche Bank research analysts also discussed recent turmoil in the crypto space, including troubles at some crypto lenders such as Celsius Network.