The bank’s economists foresee a U.S. economic downturn in 2023 and a high expansionary environment in the nation — at the rate of 9.1% in September; economists have compared the current “global stagflation winds” with the 1970s, when energy was the best-performing industry. “Except if bitcoin is becoming digital oil” its performance might be humble during a time of high inflation, the bank added.
Deutsche Bank noted that bitcoin (BTC) and other digital assets have been related with the Nasdaq and the S&P 500 stock indexes as of late. In light of its past correlation with the S&P 500 and if you consider a baseline S&P 500 price of 4,750, the bank says BTC could reach $28,000 before the year’s over, adding that this would be a 32% rally from current levels, yet not exactly 50%, the peak it reached from from last November.
According to the bank, getting token prices to settle is troublesome in light of the fact that there are no “normal valuation models like those inside the traditional framework,” As indicated by the report the cryptocurrency market is highly divided.
Moreover, speculative trades are probably going to include the synchronous utilization of a few coins, which increases overflow impacts. Any sort of liquidity existing in these business sectors could rapidly vanish, which would disintegrate trust in prices.