Deutsche Bank is releasing fairly realistic bitcoin price estimates by the end of the year.

Bitcoin, the world’s largest digital token, collapsed in 2022 amid a toxic environment as rising interest rates and fears of inflation managed to deflate a bubble that had been inflating uncontrollably for years.

Considering how close the cryptocurrency has traded to US equities, Bitcoin could reach $28,000 by the end of the yearaccording to new analysis from Deutsche Bank.

The analysis of Marion Labour and Galina Pozdnyakova suggests an increase of more than 30% from the trading level of the currency on Wednesday, which is about $20,000, despite the fact that at this price, the token is trading less than half of its November high.

As Bloomberg explained, cryptocurrencies are increasingly correlated with benchmark indices such as the tech-heavy Nasdaq 100 and S&P 500. For this reason, bitcoin predictions are closely tied to the future of these indices.

As a consequence, Bitcoin fell short of predictions by experts and market watchers that it would become a safe haven for investors. and recorded losses of more than 50% this year.

Digital currencies have lagged behind stocks, bonds and commodities during the market downturn as major central banks’ withdrawal of excess liquidity has driven their prices down. Gold, on the other hand, fought back.

Analysts also point to some of the problems that have gripped the cryptocurrency space in recent weeks.including turmoil at some hedge funds and digital asset lenders.

“Stabilizing token prices is difficult because there are no common valuation models like those used in the public equity system. In addition, the cryptocurrency market is highly fragmented.“, say bank officials.

In conclusion, the bank believes that the free fall of cryptocurrencies may continue due to the complexity of the system. so nothing is known, not even that $27,000.