Now, Wall Street giant Deutsche Bank has issued a bullish bitcoin price prediction—forecasting the $2 trillion crypto crash could be coming to an end and comparing bitcoin to the $72 billion-a-year diamond industry.
The bitcoin price could rebound to almost $30,000 by the end of the year, Deutsche Bank analysts wrote in a note seen by Bloomberg, pointing to bitcoin’s close conformity to the U.S. stock market and suggesting bitcoins are more similar to diamonds than the digital gold it’s usually compared to.
“By marketing an idea rather than a product, [diamond giant De Beers] built a solid foundation for the $72 billion-a-year diamond industry, which they have dominated for the last eighty years. What’s true for diamonds, is true for many goods and services, including bitcoins,” the analysts wrote, predicting the S&P 500 could return to January levels by the end of 2022, boosting the bitcoin price.
Bitcoin’s reputation as digital gold—a safe-haven asset that would perform like gold in periods of uncertainty—has taken a beating this year as the bitcoin price has collapsed in the face of soaring inflation and the rising risk of a global recession. For comparison, gold has held up much better.
However, Deutsche’s analysts go on to warn that the crypto crash could continue for some time more due to “the system’s complexity” and lack of “valuation models.”