Deutsche Bank analyst pointed out that the price of Bitcoin moves with a very high correlation to the US stock market, and they expect the price of Bitcoin to come back to $28 thousand by the end of the year.
Deutsche Bank predicts that Bitcoin’s price could return to $28,000 level by year-end https://t.co/wvz0dKFv8j
— Bloomberg (@business) June 29, 2022
The largest of the cryptocurrencies has retreated this year amid a general risk-off in markets caused by increasing interest rates and fears of inflation.
Deutsche Bank analysts Marion Laboure and Galine Pozrykova revealed in their report that they expect a rally of more than 30 percent in Bitcoin price.
However, even if this rally happens, the Bitcoin price will continue to be below half of the 69 thousand peaks it saw in November.
Since then, cryptocurrencies have been increasingly correlated with stock indexes such as the tech-heavy Nasdaq 100 and the S&P 500, notes Deutsche Bank. The house strategist predicts that the S&P will recover to January levels by the end of the year, and Bitcoin may follow the rally.
According to Deutsche Bank analysis, digital currency is more like diamonds than gold, which is considered safe heaven for investment.
