Bitcoin will be back this year to reach $28K.
Analysts from Deutsche Bank, a famous investment banking company, have made favorable price predictions for Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization.
According to the analysis given by Deutsche Bank’s Marion Laboure and Galina Pozdnyakova as published by Bloomberg, the top cryptocurrency would rally to $28,000 by year-end, boasting a nearly 40% gain from its current price of $20,035.
Deutsche Bank: BTC Correlated to S&P 500
Laboure and Pozdnyakova have expressed confidence in their Bitcoin predictions due to the fact that the world’s largest cryptocurrency has been heavily correlated with the Nasdaq 100 and S&P 500 since November 2021.
The analysts noted that the traditional financial instruments would rally in the coming months to their January levels, while Bitcoin would follow closely to reach $28,000 by year-end.
Bitcoin has seen a significant percentage of its value shredded beyond expectations since it peaked at an all-time high of $69,047.
BTC Failed to Live Up to Expectations
With BTC hitting $69,000 in November, many pundits predicted that the asset class would easily hit $100,000 in a few months as things seemed to be going in favor of the financial instruments at the time.
Unfortunately, Bitcoin has gone in contrast to these predictions, falling more than 71% since it reached its previous all-time high last year.
A number of factors, including rising inflation and the Terra collapse, have been attributed to the reasons Bitcoin’s value has plunged massively.
The world’s largest cryptocurrency, which has been referred to as a hedge against inflation, has failed to provide shelter for investors in the ongoing economic crisis.
While the Deutsche Bank’s analysts see BTC at $28,000 by year-end, the prediction is not even close to 50% of the asset class’ previous all-time high of $69,000.
BTC Still Yet to Find A Bottom
At the time of writing, Bitcoin is changing hands at $20,035 and the cryptocurrency has been down 2.1% in the last 24 hours.
Despite Bitcoin’s tremendous dip since the beginning of the year, many pundits still believe the asset class is yet to find a bottom. Following Bitcoin’s previous cycle lows, it is expected that the current BTC bottom is between the ranges of $10,000 and $14,000, a prediction that veteran futures trader Peter Brandt affirms.