The crypto sector has been going through brutal months for a short time. While the price of cryptocurrencies is experiencing an unparalleled drop, the trend shows no signs of improving. From $45,000 at the start of April, bitcoin went through various stages before trading at $19,000. While crypto investors hope for a rise soon, Deutsche Bank strategists believe the fall may continue.
The downtrend is not about to end
The cryptocurrency crisis worries crypto investors. Since the beginning of the bearish formations, the price of the various crypto assets has been falling constantly. Bitcoin, which was trading at almost $70,000 at the end of last year, gradually fell until it reached $19,000 today. According to a recent report by Deutsche Bank strategists, the sector’s tough times don’t seem to be ending anytime soon.
For Marion Laboure and Galina Pozdnyakova, the downtrend could continue because of the complexity of the system. For the duo, the highly publicized Celsius disaster and the collapse of the Terra ecosystem make it difficult to stabilize token prices. Why ? Because due to the segmentation of the cryptocurrency market, there are no common valuation models unlike the public equity system.
Macroeconomic conditions are also not playing in favor of crypto assets. The opinion of the experts of the German bank does not go unnoticed since Michael Burry has the same concerns. Indeed, the hedge fund manager made famous by the movie The Big Short thinks the stock market and crypto are in the midst of a gargantuan correction. Thus, the current trend could continue for quite a while.
Bitcoin Could Rebound to $28,000 by Year End
The bearish trend of crypto assets strongly impacts bitcoin. At a time when people are starting to lose hope, all eyes are on the queen of cryptocurrencies. Indeed, a rise in the price of bitcoin (BTC) could lead to an increase in the prices of other assets. Whatever the type of investors, individuals or companies, a recovery could only be beneficial.
The German bank strikes a kind of crushing blow on the hopes that some negotiators harbor. However, while these strategists believe the markets may continue to slide, they also note that the S&P 500 moving in tandem with the crypto could be an advantage.
According to the bank, the S&P 500 could return to January levels. As a result, bitcoin’s close ties to traditional financial systems could trigger a rally of nearly 31% from current prices. Thus, there is a strong possibility that the bitcoin price will reach $28,000 by December.
The German bank thinks that the fall of cryptocurrencies could continue. However, it is not the only one as many investors have asserted that the current correction must continue before hoping for a recovery. Despite everything, strategists still believe that bitcoin could reach $28,000 by December. Even if we are still far from the November 2021 price, it would be much better than the current prices.
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The world is changing and adaptation is the best weapon to survive in this undulating universe. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. In order to share my experience and make known a field that fascinates me, nothing better than writing informative and relaxed articles at the same time.