Bitcoin continues its unstoppable upward growth, and Deutsche Bank analysts think the digital currency will not stop its upward run very soon.
If you haven't taken a trip to Mars in the past few months, then you will be aware that bitcoin has experienced stellar growth in recent times. Currently, BTC is trading above the $ 58 threshold (here you can take a look at its price in real time). Its market capitalization has exceeded one trillion dollars. And now, according to Deutsche Bank analysts, the bull run will continue.
But why is Deutsche Bank now also so optimistic?
Deutsche Bank analysts did not just say that bitcoin will continue to grow, they also explained why this is practically certain that it will happen. First of all, because for central banks and governments, it has now become too important and can no longer be ignored.
Last Wednesday, the analysts of the German bank published a report focused on the most important digital currency in the world and entitled (in German of course) "The future of payments: Series 2 Part III". Inside, analysts wanted to investigate the reasons why bitcoin has continued to rise for months.
The most interesting thing for those who intend to invest in Bitcoin, even through automatic trading platforms such as Bitcoin Pro, is that they think that the growth margins are still very large. And they have no doubts that bitcoin will continue to grow, should it attract even more attention from wealth managers and large corporations.
However, the usual problems remain
Also Deutsche Bank analysts say that BTC is now too important to ignore, especially for such a large market capitalization. In short, central banks and governments now know that by the end of this year, they will have to get to work regulating its use.
But while analysts are positive about its growth potential, they still point out that marketability and limited liquidity still remain the currency's weak point.
The real question is: "If by themselves, the increase in valuations can be enough to evolve the digital currency into an asset of real value or if its limited liquidity can be its biggest obstacle."
In the short term, analysts think bitcoin will continue to be very volatile. However, in the next couple of years there could be a real breakthrough in the world of cryptocurrencies.
Therefore, Deutsche Bank is also bullish on bitcoin. The multinational in a report to the WEF (World Economic Forum) last December, revealed how it intends to introduce cryptocurrencies in the traditional banking sector. In particular, in the wake of JPMorgan's budget, the German bank plans to offer its investors a custody service.