Deutsche Bank jumps on the BTC-bashing bandwagon – says its value is based on wishful thinking

Deutsche Bank jumps on the BTC-bashing bandwagon – says its value is based on wishful thinking

A client note from analysts at DB on Bitcoin. Follows the rout in the crypto over the past week or so.

DB says the drop was triggered by a tweet (from Musk) and a China statement.

(For clarity, there were a few statements out of China:

I really should add there is plenty of talk of a campaign that was waged to send the price down, posts on Chinese social media and what have you. Anyway, back to DB’s note)

DB:

  • Those few words caused bitcoin’s value to plummet from nearly $60,000 in the days before to below $48,000
  • on Tuesday, the PBoC reiterated that it would ban digital tokens as a means of payment, thus causing Bitcoin to plunge just above $30,000 at one point

DB then argues 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
  • the value of bitcoin is entirely based on wishful thinking
A client note from analysts at DB on Bitcoin. Follows the rout in the crypto over the past week or so.

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