Analysts at Deutsche Bank expect the Bitcoin price to recover to 28 thousand dollars in December 2022. The analysts also expect that the crypto market will be correlated with the global stock markets for a while.
Bitcoin is set to recover by 30 percent
The entire crypto market is having an extremely difficult six months. Bitcoin even experienced its bad quarter in 10 years. Macroeconomic conditions around the world have played a role in this. Investors are in fact fearful of skyrocketing inflation, the war in Ukraine and underperforming stock markets.
In a report Two Deutsche Bank analysts, Marion Labore and Galina Pozdnyakova, have tried to predict the future of Bitcoin. The analysts suggest that the crypto market has mirrored the movements of the Nasdaq and the S&P 500 since late 2021.
And since the analysts expect the S&P 500 to recover to January levels, they believe this means that the Bitcoin price will also start to recover. A price increase of about 30% to a level of $28,000 is likely, analysts at Deutsche Bank say.
“A recovery of the crypto market is by no means certain”
The forecast is therefore fairly positive, but both analysts say that a recovery of the crypto market is by no means certain. The problems surrounding the Terra and Celsius collapse are especially dangerous for the market. Problems like this can hold back the stabilization of prices.
“Stabilizing token prices is difficult because there are no common valuation models like those within the public stock system. In addition, the crypto market is highly fragmented. The price drop could continue due to the complexity of the system.”
JPMorgan analysts are positive
JPMorgan analysts are more positive about the crypto market. According to them, the recovery has already started and it is a good sign that major players in the crypto world with a lot of money are trying to contain the problems. According to JPMorgan analysts, the market will continue in a healthy way in a while.
