$72 Billion ‘Diamond’ – Wall Street Giant Releases Shock Bitcoin Price Prediction Amid Continuing Crypto Crash of Ethereum, BNB, XRP, Solana, Cardano and Dogecoin

Bitcoin
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Ethereum and other major cryptocurrencies continued to decline this week, with the price of bitcoin suddenly dropping below the closely watched level of $20,000 per bitcoin after a dire warning in China.

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The price of bitcoin has crashed to levels not seen since November 2020, while the price of ethereum has fallen back to around $1,000 per ether, with some predicting that those who survive could become the future tech giants. The rest of the top 10 cryptos – BNB, XRP, solana, cardano and dogecoin – are doing just as badly.

Today, Wall Street giant Deutsche Bank released a bullish bitcoin price prediction – forecasting that the $2 trillion crypto crash could be coming to an end and comparing bitcoin to the diamond industry of $72 billion a year.

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Bitcoin price could rebound to nearly $30,000 by the end of the year, Deutsche Bank analysts wrote in a note seen by Bloomberghighlighting bitcoin’s close alignment with the US stock market and suggesting that bitcoins are more like diamonds than the digital gold they are commonly 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 they have dominated for the past eighty years. What is true for diamonds is true for many goods and services, including bitcoins,” the analysts wrote, predicting that the S&P 500 could return to January levels by the end of 2022, pushing the price higher. bitcoin.

Bitcoin’s reputation as digital gold – a safe-haven asset that would behave like gold in times of uncertainty – took a hit this year as bitcoin’s price crashed in the face of soaring global currency. inflation and the growing risk of a global recession. By way of comparison, gold held up much better.

However, Deutsche analysts go on to warn that the crypto crash could continue for quite some time due to “the complexity of the system” and the lack of “valuation models”.

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“Token price stabilization is difficult because there are no common valuation models like those in the public equity system,” they wrote. “Furthermore, the crypto market is very fragmented.”

The mood among members of the bitcoin and crypto community is bleak after bitcoin’s latest sub-$20,000 crash – with some predicting there could be more pain to come as investors rush to cash out their crypto -currency of lenders and that hedge funds are facing a liquidity crisis.

“If bitcoin is unable to hold its low-end support of $20,000, the next closest support will be found at $16,000,” wrote Sam Kopelman, UK head of crypto exchange Luno. , in comments via email.

“The market is also paying close attention to how the current imbalances – a combination of defaults and bank runs – are being resolved, which limits bitcoin’s ability to see a substantial recovery.”

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