Experts expect the price of the first cryptocurrency will follow the rise of the S&P 500 amid their increasing correlation

Deutsche Bank analysts predicted the bitcoin rate to rise to $28 000 by the end of the year

01.07.2022 - 10:40

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What’s new? Analysts at Germany’s largest bank, Deutsche Bank, believe the price of bitcoin will reach the $28 000 mark by the end of 2022. According to a report by Marion Laboure and Galina Pozdnyakova, the correlation between digital asset rates and the Nasdaq 100 and S&P 500 stock indices has been increasing since November 2021. In this, experts predict that by the end of the year, the S&P will rise to January levels, which means that the price of the first cryptocurrency could follow.

Bloomberg’s material

The S&P 500 stock index basket includes 505 stocks of the 500 largest-capitalized public companies traded on the US stock exchanges. The index is compiled by Standard & Poor's, an analytics firm.

The Nasdaq 100 basket includes the 100 largest industrial high tech companies by capitalization, whose shares are traded on the US Nasdaq stock exchange.

What else does the report say? Analysts believe that bitcoin has not lived up to the expectations of investors who believed that the asset would be a safe store of value. Instead, their losses amounted to more than 50%. Experts added:

“The digital currency is more like diamonds — a highly marketed asset — rather than gold, a stable safe-haven commodity.”

As of July 1, 10:40 UTC, bitcoin is trading at $19 156, the asset price increased by 0,35% in 24 hours, according to Binance.

Analysts at JPMorgan, a financial holding company, believe that the crypto market will soon hit the bottom. In their view, this is indicated by assistance to companies on the verge of collapse by major players, deleveraging, and a steady inflow of venture capital investments into the industry.

Also, crypto analyst Benjamin Cowen said that bitcoin may be on the verge of entering the accumulation phase. He used the Market Value to Realized Value (MVRV) Z-score to make the prediction.

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