A year-end rally would certainly be the way cryptocurrency investors would like to exit 2022. Deutsche Bank is forecasting just that with a potential year-end pop for bitcoin.
Of course, it would be a nice change given that the leading cryptocurrency has mostly followed stocks on the way down this year, thanks to recession fears. The parity has been a 180-degree turn for the cryptocurrency space that is supposed to be uncorrelated with the stock market.
Nonetheless, Deutsche Bank thinks that bitcoin can turn things around by year’s end. The leading cryptocurrency is a far cry from its high of $69,000 from back in November 2021.
“Given how closely it has been trading with US stocks, Bitcoin could reach as high as $28,000 by the end of the year, according to an analysis from Deutsche Bank,” a Bloomberg article said.
“The analysis by Marion Laboure and Galina Pozdnyakova suggests a more-than 30% rally from the coin’s Wednesday trading level of around $20,000 — though even that price-point leaves the token trading at less than half its November peak,” the article added.
Investors looking to get cryptocurrency exposure to bitcoin in particular can check out exchange traded funds (ETFs) that focus on bitcoin futures. ETFs tied to bitcoin can provide investors exposure via a traditional market exchange.
Speaking of which, for investors worried about security via online cryptocurrency exchanges, the ProShares Bitcoin ETF (BITO) offers the opportunity to invest with confidence in a traditional market exchange — in this case, the New York Stock Exchange. In that regulatory framework of the traditional financial markets, BITO offers investors exposure to bitcoin via futures.
Crypto Hedge Fund Files for Bankruptcy
For certain hedge funds, a cold and harsh winter came early. This certainly gives credence to the “crypto winter” sell-offs.
Fueled by oversized bets in cryptocurrencies, a number of hedge funds are reeling from the latest sell-offs. According to a CNBC report, crypto hedge fund Three Arrows Capital is one of the biggest casualties that have succumbed to the latest downward pressure on cryptocurrency prices.
“Crypto hedge fund Three Arrows Capital (3AC) is seeking protection from creditors in the United States under Chapter 15 of the U.S. Bankruptcy Code, which allows foreign debtors to shield U.S. assets, according to a court filing on Friday,” CNBC reported.
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