Deutsche Bank: Bitcoin has become ‘too important to ignore’.

Analysts at the Deutsche Bank financial conglomerate заявили, that Bitcoin will continue to rise while it attracts new large investors. The bank called the asset ‘too important to ignore’.

According to a Deutsche Bank report, despite digital gold’s market capitalization reaching $1 trillion, it has retained high volatility due to the limited accessibility of the crypto market.

According to the analysts, in 2020 the asset’s turnover reached 28 million BTC, corresponding to 150% of coins in circulation. The bank noted that Bitcoin’s market capitalization equates to 102% of yen in circulation, 65% of euros, 53% of dollars, and 904% of pounds.

By comparison, Apple’s stock turnover in 2020 reached $40 billion or 270% of the total shares outstanding. Bitcoin’s daily turnover is 0.05% of the yen and 0.06% of the pound’s volume. The authors are confident that, as a result, a few large purchases or sales could significantly affect the asset’s supply and demand.

The conglomerate estimated that the share of payment transactions in the Bitcoin network is less than 30%. The remaining 70% are financial investments.

Analysts likened Bitcoin to Tesla, because the asset must also turn its potential into results to justify its value proposition.

The report states that to sustain the current valuation of the cryptocurrency market, digital assets must become the preferred vehicle for cross-border settlements, with Bitcoin at the forefront of these changes.

According to the analysts, the price of digital gold will continue to be exposed to the “Tinker Bell effect”. As the term suggests, in economics the probability of an event depends directly on people’s belief in it.

Deutsche Bank notes that central banks and governments recognise the growing popularity of cryptocurrencies and are keen to regulate them.

As noted, a recent Goldman Sachs survey showed that 40% of their clients own digital assets. Of them, more than 60% expect crypto to rise over the next 12-24 months.

Earlier, the German commercial bank Donner & Reuschel promised to add services for buying and storing digital assets.

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