Researchers at Deutsche Bank say Bitcoin (BTC) might rise by as much as 40% to finish the year despite its months-long losing streak.
According to a new BNN Bloomberg report, Deutsche analysts Marion Laboure and Galina Pozdnyakova note that Bitcoin’s chart patterns are looking similar to traditional stock markets.
Their prediction that the S&P 500 will recapture January levels means BTC could climb back to $28,000.
The analysts add that cryptocurrencies are more like diamonds than gold, noting the successful branding done by the De Beers corporation.
“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 Bitcoin.”
Laboure and Pozdnyakova conclude by warning that it’s not guaranteed BTC will rally due to the complex and non-traditional nature of cryptocurrencies.
“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.”
At time of writing, Bitcoin is down 5.55% over the past 24 hours, priced at $19,777.
BTC would need to rally by 41.5% from current levels to revisit $28,000, a price last seen on June 12th.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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