With bitcoin continuing to increase in value, analysts at Deutsche Bank are in agreement when they assert that the cryptocurrency isn’t going anywhere.
Unless you’ve been living under a rock, you’re more than aware of bitcoin’s stellar growth over the past months. Data from CoinMarketCap shows that it is currently trading at $58,687.91, with a market cap worth $1.09 trillion. The bitcoin bull market has been raging for a couple of months now and according to analysts at the bank, the record-breaking rally could continue.
The bank’s analysts also explained why bitcoin has now become too important for even governments and central banks across the globe to ignore the digital asset.
Deutsche Bank Bullish On Bitcoin
Analysts at Deutsche Bank published a report on Wednesday (March 17) centered around bitcoin and entitled “The Future Of Payments: Series 2 Part III. Bitcoins: Can The Tinkerbell Effect Become A Self-Fulfilling Prophecy?”. In the report, the analysts delve into the basic attributes of the biggest cryptocurrency and the catalysts behind the rise to a trillion-dollar market.
What’s even more interesting is that the bank’s analysts envision that bitcoin has more room for growth based on this caveat: the crypto’s rise could continue if it continues attracting firms and asset managers.
Deutsche Bank strategists believe that bitcoin has become too important to be ignored given its $1 trillion market cap. In other words, most governments and central banks now understand that the bellwether cryptocurrency and other cryptos, in general, are here to stay and they are likely to start regulating the sector by the end of this year.
However, according to the analysts, while bitcoin has seen explosive growth, its limited liquidity and tradability remain its Achilles heel. They posited: “The real debate is whether rising valuations alone can be reason enough for bitcoin to evolve into an asset class, or whether its illiquidity is an obstacle.”
Deutsche analysts also expect the top crypto to remain volatile in the near-term. But perhaps not for much longer as they foresee the next two or so years proving to be a watershed moment in the asset’s future.
Notably, Deutsche has been quietly bullish on bitcoin. The multinational bank revealed its gameplan to introduce a bridge between the traditional banking sector and crypto in a report by the World Economic Forum (WEF) last December. In particular, the bank plans to launch a custodial service for institutional investors.