Deutsche Bank predicted a return of bitcoin to $28,000

Bitcoin price could recover to $28,000 by the end of 2022, according tospecialists of Deutsche Bank.reports Bloomberg.

According to the bank's strategists Marion Labour and Galina Pozdnyakova, the growth will be associated with a rally in the US stock market.

Experts drew attention to the fact that since November, cryptocurrencies have become more and more correlatedWith the Nasdaq 100 and S&P 500 indexes, they believe these benchmarks will recover to January levels by the end of the year, pulling bitcoin with them.

At the time of writing, the price of the first cryptocurrency has fallen below $20,000 and is testing the $19,000 mark.

Deutsche Bank Predicts Bitcoin Return to $28,000

Strategists at Deutsche Bank believe that the arguments in favor of bitcoin as "digital gold" have fallen apart.Cryptocurrency has not become a safe haven against the backdrop of falling stock markets, physical gold has "behaved better" in this regard.

Rather, bitcoin is like diamonds — a "high-market asset" that relies mainly on marketing, Labur notedThey recalled that in the 1950s, the largest player in the market, De Beers, was able to change consumer attitudes towards precious stones with an advertising campaign.

"By selling an idea, not a product, they have created a solid foundation for the $72 billion-a-year industry that has dominated for the past 80 years.What is true for diamonds is true for many goods and services, including Bitcoin," the experts said.

They also pointed to some of the issues that have plagued the digital asset market in recent weeks, including the financial insolvency of some hedge funds and crypto lenders.

Experts believe that the recovery of the crypto market is hampered by the “lack of common valuation models similar to those existing in the public capital system.”