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Deutsche Bank warns a 'bitcoin crash’ is among the market's most significant 2018 risks

Torsten Slok, the firm's chief international economist, sent to clients a list of significant risks to the market in Included on that list: A crash in the price of bitcoin, higher inflation and the threat of North Korea.

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At this juncture, as the cryptocurrency has advanced quadruple digits this year, Slok said the markets have not correctly priced in the broader impact bitcoin could potentially have. Deutsche Bank's risks to the market in "It is something that I think financial markets so far have been discounting as a small issue," the economist said Thursday bitcoin profit jim davidson CNBC's " Trading Nation.

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And of course with the speed with which prices are going up, then you do wonder where prices will be even by the end of But we do think that inthis, of course, will continue to be a topic, and there are a number of questions that remain unanswered," Slok said. Last week, "Mad Money" host Jim Cramer likened bitcoin trading to "an abstruse casino game that seems to have only winners and no losers.

You've got to like that, right? I think, though, that could change," Cramer said.

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Specifically, questions persist around regulation of the cryptocurrency and transparency in what exactly investors hold, according to Deutsche's Slok. Its volatility could intensify in days ahead as exchanges prepare to launch bitcoin futures trading. Could the market's new darling become its next black swan event?

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