- According to an analysis by Deutsche Bank, Bitcoin could gain a little by the end of the year.
- Accordingly, you can still see room for improvement up to $ 28,000.
- However, this forecast should be treated with caution, because the risks are increasing for the crypto market.
According to a report by BNN Bloomberg, two analysts at Deutsche Bank see the possibility of Bitcoin rising to $28,000 by the end of the year. Because BTC still correlates very strongly with the Nasdaq 100 and the S&P 500, this analysis is probably based primarily on what one expects for the stock market.
If the shares succeed in regaining the level of January 2022, then this would mean that Bitcoin would arrive at the price target of “28k”. Provided, of course, that the previously close correlation is still maintained.
At the moment, however, it does not look rosy, neither for the stock markets nor for Bitcoin. The precarious situation of the world economy and record inflation can be identified as reasons.
Recession is in the air
The fear of a recession is high and so is the likelihood that we will experience one. In such a climate, most investors do not seem to feel risk appetite. While in 2020 and 2021 it was assumed that Bitcoin did not correlate closely with other assets and that it was an inflation hedge, in 2022 we are facing complete facts.
Therefore, the analysis should be treated with caution, because if the world economy is taking a bath due to war, the energy crisis and inflation, then the worst is likely to be yet to come. Meanwhile, Bitcoin is trading at $ 19,000 and could certainly reach new lows for the year, subject to a short-term rebound.
Bitcoin has not experienced a crisis of this kind so far. And accordingly, there is no playbook for the current dominant market. It therefore makes no sense to declare Bitcoin dead, just as it cannot be touted as a safe haven. Because the current situation does not allow this conclusion.
Soil formation becomes crucial
What Bitcoin lacks is not an additional forecast, because we really have enough of that. However, soil formation will be of decisive importance. This has not yet been done, and only when it has been completed can statements be made about what expectations can be assumed.
If, contrary to the expectations of most analysts, traders, influencers and investors, it does not play out above $ 10,000, then it remains to be seen what impact such an event would have. After all, this would be an unprecedented crash in a situation where the rest of the economy is not particularly well positioned and many people lack the perspective in a completely different place.
Conversely, it should have a calming effect if there is no total crash and Bitcoin is somewhere between $ 10,000 and $ 14,500. The higher the soil formation can be done, the better. Admittedly, these figures form a very broad field, but this reflects the current expectations of many market participants towards the end of sales.
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