According to a Thursday report published by Bloomberg, Deutsche Bank, a German multinational investment bank, has predicted that the price of Bitcoin could recover to $28,000 by the end of the year.
The rationale behind the modestly upbeat prediction is that the stock market is likely to partially recover by the end of the year. Due to a strong correlation with the tech-heavy Nasdaq 100, Bitcoin is likely to recover in tandem with U.S. equities, Deutsche Bank says.
The world's largest cryptocurrency has once again slipped below the $20,000 level, currently trading at $19,995 on the Bitstamp exchange.
Tom Lee's investment firm Fundstrat recently predicted that the price of the largest cryptocurrency would retest the June low of $17,592. For more blockchain news, please download WikiBit - the Global Blockchain Regulatory Inquiry APP.
Digital diamonds？
Now that the case for Bitcoin as “digital gold” has fallen apart, Deutsche Bank analysts believe that it would be more apt to compare the flagship cryptocurrency to diamonds.
The top digital coin mainly relies on marketing, which makes it similar to De Beers, the London-based corporation that managed to revolutionize the diamond industry with its iconic ad campaign in the late 1950s.
Bitcoin proponents are marketing an idea instead of a product, Deutsche Bank says.