By year's end, Bitcoin may reach $28,000, according to Deutsche Bank
That still represents a significant decline from the peak of $48,234 recorded in March of this year and the all-time high of almost $69,000 recorded in November 2021. JP Morgan claims that the deleveraging of the cryptocurrency markets is well underway and may signal the end of the bear market soon.
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Bitcoin (BTC), the most valuable digital currency in the world by market capitalization, is expected to reach a high of $28,000 by the end of the year, according to Deutsche Bank, despite the fact that it is already trading over the $19,000 mark despite a general market downturn.
BTC is presently trading flat at $19,250, down from its all-time high of $48,234 that was reached in March of this year, when it hit a low of $18,729 on Friday morning.
BTC hit an all-time high of about $69,000 in November 2021.
BTC may rise about 30% from its present levels, according to research by Deutsche Bank analysts Marion Laboure and Galina Pozdnyakova, but it would still be more than half the distance from its all-time high.
They claimed that as opposed to gold, a reliable safe-haven asset, "the digital money is more like diamonds — a highly marketed asset."
Laboure and Pozdnyakova compared BTC to the world's largest diamond corporation, The De Beers Group, claiming that they successfully altered public perception through aggressive promotion.
They created a strong basis for the $72 billion diamond industry, which they have dominated for the past 80 years, by marketing an idea rather than a product. The same is true for numerous products and services, including Bitcoins, as it is for diamonds, they claimed.
Concerning the valuation models used by cryptocurrencies, they stated that "Stabilizing token prices is difficult due to the lack of widespread valuation models like those used in the public equities system. The cryptocurrency market is also very fragmented, they added. "The complexity of the system could allow the crypto freefall to continue."
JP Morgan claims that the crypto markets are already deleveraging to a significant degree, which might mean that the bear market is about to come to an end.
The severity of certain crypto firms' deleveraging may be so great that it suggests the fallout from this year's crypto market collapse is still being felt. According to JPMorgan strategist Nikolaos Panigirtzoglou, "the fact is that crypto firms with the stronger balance sheets are currently stepping in to assist stop the contagion."
