According to a recent note fromDeutsche Bank, the criptocurrency could be poised for an end-of-year rally to $28,000 as the stock market continues to sell off.
The broader sector has shared in the turmoil caused by the fall of the world's biggestcryptocurrencies by market cap. According to the bank's analysts, the correlation between the S&P 500 and the token has become more pronounced this season.
While digital gold has been described, it actually resembles diamonds, according to the bank. Analysts said that the mining and trading company De Beers changed the perception of the virtual currency.
According to the note, what's true for diamonds is true for many goods and services.
Cryptocurrencies are struggling to regain lost ground as the market turmoil continues. After hitting a high of $3 trillion on June 13, the total market cap for cryptocurrencies fell below $1 trillion on June 13
The Federal Reserve and central banks have raised their rates in order to tame inflation. The digital currency has fallen to $18,000 twice in the last week.
During this tightening cycle, the ability ofBitcoin to be regarded as a separate asset class will be a key test.
There is hope for the market. It can work to the upside as well as the downside.
The S&P 500 is expected to rebound to 4,750 by the end of the year. Analysts thought about a range of scenarios and came to the conclusion that it would take $27,000 to $28,000 for the currency to finish the year.
It would be a 32% rally from its current price but still less than its all-time high last November.
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