$72 Billion “Diamond” – Wall Street Giant Issues Surprising Bitcoin Price Prediction Amid Ethereum, BNB, XRP, Solana, Cardano and Dogecoin Crypto Crash Continue

Bitcoin
BTC
Ethereum and other major cryptocurrencies are on the decline this week with bitcoin price suddenly dropping below the closely watched $20,000 per bitcoin level after China’s dire warning.

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The price of Bitcoin has collapsed to levels not seen since November 2020 while the price of Ethereum has fallen back to around $1,000 per Ether – with some predicting those who survived will become the tech giants of the future. The rest of the top ten cryptocurrencies – BNB, XRP, solana, cardano, and dogecoin – are just as bad.

Now, Wall Street giant Deutsche Bank has issued a bullish bitcoin price prediction – predicting the $2 trillion crypto-currency crash to end and comparing bitcoin to the $72 billion annually diamond industry.

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Deutsche Bank analysts wrote in a note I reviewed BloombergBitcoin’s close alignment with the US stock market suggests that bitcoins are more like diamonds than digital gold with which they are usually compared.

“By marketing an idea rather than a product, [diamond giant De Beers] They established a solid foundation for the $72 billion a year diamond industry, which they have dominated for the past 80 years. What applies to diamonds is true for many goods and services, including bitcoin,” the analysts wrote, predicting a return of the S&P 500 index to January levels by the end of 2022, boosting the price of bitcoin.

Bitcoin’s reputation as digital gold – a safe-haven asset that will perform like gold in periods of uncertainty – has taken a hit this year as the price of bitcoin collapsed in the face of spiraling inflation and the rising risks of a global recession. For comparison, gold held up better.

However, Deutsche analysts warn that the cryptocurrency’s crash may continue for some time due to “system complexity” and a lack of “evaluation models.”

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“It is difficult to stabilize token prices because there are no common valuation models like those found in the public equity system,” they wrote. In addition, the cryptocurrency market is very fragmented.

The mood among the bitcoin and crypto community is bleak after bitcoin’s recent crash below $20,000 — and some predict there could be more pain as investors rush to withdraw their crypto from lenders and hedge funds face a liquidity crunch.

“If Bitcoin is unable to maintain its lower support of $20,000, the next closest support will be $16,000,” Sam Kopelman, UK director of crypto exchange Luno, wrote in an email comment.

“The market is also paying close attention to how to resolve the current imbalances – a mix of defaults and bank flows – limiting Bitcoin’s ability to see a significant recovery.”

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