Deutsche Bank Predicts Bitcoin Could Return to $28,000 by Year-End
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BTC will Rally $28,000 This Year
According to the analysis given by Deutsche Bank's Marion Laboure and Galina Pozdnyakova as published by Bloomberg, Bitcoin (BTC) would rally to $28,000 by year-end, boasting a nearly 40% gain from its current price of $20,035.
The bank strategists remain particularly bullish on their prediction due to the fact that Bitcoin (BTC) has been heavily correlated to benchmarks like Nasdaq 100 and the S&P 500. The duo believes that the S&P will recover to January levels by year-end and Bitcoin may come along for the ride.
For instance, the traditional financial instruments would rally in the coming months to their January levels, while Bitcoin would follow closely to reach $28,000 by year-end, per them.
Bitcoin - More Like Diamonds
According to Marion and Galina, Bitcoin is more like diamonds, a highly marketed asset rather than gold, a stable safe-haven commodity. To prove their point, they tell the tale of De Beers, a major player in the diamond space, which was able to change consumer perception about diamonds thanks to its 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. What's true for diamonds, is true for many goods and services, including Bitcoins," they said.