Deutsche Bank – Bitcoin’s Market Cap of $1trillion Makes it Impossible to Ignore
A report published by Deutsche Bank states that Bitcoin’s (BTC) acclaimed market capitalization of $1 trillion and likelihood for sustained growth have transformed the crypto “too important to ignore.”
Deutsche Bank Research, which is the financial research associate of international banking behemoth Deutsche Bank, issued a Bitcoin focused document named “The Future of Payments: Series 2 Part III. Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?”
In the 18-page document, Deutsche Bank Research explains the fundamental aspects of Bitcoin and scrutinizes the main drivers that took market capitalization to over $1 trillion. Deutsche Bank analysts advised that the Bitcoin price “could continue to rise” until funds and enterprises keep entering the crypto domain.
The firm stressed that central banks and governments currently “understand that Bitcoin and other cryptocurrencies are here to stay,” and thus are anticipated to begin overseeing them by the end of this year.
In spite of increasing valuation, Bitcoin’s price rally as an asset category could be affected by its “still limited” liquidity and tradability, cautioned research team of Deutsche Bank. The analysts further stated that “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 Bank analysts finished by stating that Bitcoin will “remain ultravolatile” in the near-term. Furthermore, the analysts forecast a watershed moment in the forthcoming “two or three years” as a clarity could be there about its future.