Crypto Currency News

Deutsche Bank: “Bitcoin is too important to ignore”

The bank presented second part of its report “The future of payments”.

Deutsche Bank analysts came out in favor of the crypto market again, amid an escalation of institutional interest, mainly from large financial firms. After the capitalization of Bitcoin (BTC) exceeds one trillion dollars, the specialists of the firm stressed that the asset is already “too important to ignore.”

The arm dedicated to financial research, Deutsche Bank Research, published the second part of its report “The future of payments”, where it is dedicated exclusively to the largest crypto currency on the market.

In addition to presenting the general characteristics of the digital asset that revolutionized the international financial system, the document explains the different drivers that have brought the price of BTC to current levels, generating a market capitalization of over a trillion dollars.

At that point, strategists slipped that the price of BTC will continue to rise as large finance companies join the market. Likewise, the greater adoption -according to the report- will lead governments and central banks this year to advance in the development of regulatory frameworks.

Lastly, the document also warns that BTC’s limited tradability and liquidity could hamper its growth, and suggests that in the short term the price will continue to be “ultra-volatile”.

“The real debate is whether rising valuations alone can be reason enough for BTC to become an asset class, or whether its lack of liquidity is an obstacle,” the experts noted.

Tags

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close