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$72 Billion ‘Diamond’-Wall Street Giant Ethereum, BNB, XRP, Solana, Cardano and Dogecoin Offer Shock Bitcoin Price Predictions Amid Crypto Crash

Ethereum and other major cryptocurrencies continued to slide this week with Bitcoin price plunging below the closely watched $20,000 level after a sudden China warning.

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The price of bitcoin has fallen to levels not seen since November 2020, while the price of ethereum has fallen to around $1,000 per ether—some predicting that the survivor could become the tech giant of the future. The rest of the crypto top ten—BNB, XRP, solana, cardano and dogecoin—are equally bad.

Now, Wall Street giant Deutsche Bank has issued a bullish Bitcoin price forecast – a $2 trillion crypto crash could be over and compares Bitcoin to the $72 billion a year diamond industry.

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Bitcoin price could rebound to around $30,000 by the end of the year, Deutsche Bank analysts wrote in a note seen BloombergThis indicates Bitcoin’s close adherence to the US stock market and suggests that Bitcoins are more akin to diamonds than digital gold in comparison.

“By selling an idea rather than a product, [diamond giant De Beers] They have dominated the past eighty years, building a solid foundation for the $72 billion-a-year diamond industry. What’s true for diamonds is true for many goods and services, including bitcoins,” the analyst wrote, adding that the S&P 500 could return to January levels by the end of 2022, boosting bitcoin prices.

Bitcoin’s reputation as digital gold—a safe-haven asset that acts like gold during periods of uncertainty—has eroded this year amid soaring inflation and the threat of a global recession. For comparison, gold is much better.

However, the Deutsche analyst warned that the crypto crash could continue for some time due to the “complexity of the system” and the lack of “valuation models”.

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More from Forbes‘Heading to Zero’-China Issues Shock Bitcoin Price Amid Massive $2 Trillion Crypto Crash

“Token prices are difficult to stabilize because there are no common valuation models in a public equity system,” he wrote. “Also, the crypto market is highly fragmented.”

Sentiment among those in the bitcoin and crypto community has dipped below $20,000 following bitcoin’s recent decline — with some speculating that more pain could come as investors rush to withdraw their cryptocurrency from lenders and hedge funds face a liquidity crunch.

“If Bitcoin is unable to sustain its low-level $20,000 support, the next closest support will be found at $16,000,” Sam Kopelman, UK manager at crypto exchange Luno, wrote in emailed comments.

“The market is paying close attention to how the current imbalances—a combination of defaults and bank runs—will be resolved, hindering Bitcoin’s ability to see a substantial recovery.”

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