Banking conglomerate Deutsche Bank's analysts have said that after reaching a market capitalization of $1 trillion, Bitcoin has become "too important to ignore."
According to experts, the price of Bitcoin could continue to rise as the asset attracts new large investors, such as asset managers and corporates. However, Bitcoin's limited tradability will remain the reason for its increased volatility, according to Deutsche Bank.
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In the future, according to analysts, the BTC price will continue to grow depending on what is known as the "Tinkerbell effect:" this is a situation where the probability of a certain event occurring depends directly on how many people believe in it.
Deutsche Bank’s experts have also compared Bitcoin to Tesla, as it will also "have to convert potential into results to sustain its value proposition." Tesla's stock valuation is based on forecasts of a shift in consumer preferences in favor of electric vehicles and the company's leadership in this market.
Therefore, in order to maintain the current valuation of the crypto market, digital assets should become the preferred means of cross-border settlement, and Bitcoin should lead these changes, Deutsche Bank says.