A survey compiled by the multinational investment giant Deutsche Bank concluded that more than half of investors believe bitcoin and US tech stocks to be the biggest market bubbles.Consequently, the participants, most of whom are professional investors, predicted subsequent corrections.Bitcoin Is The Biggest Market Bubble?The primary cryptocurrency has been on a tear since early October 2020. BTC more than quadrupled its value since then to a new all-time high of ,000. Despite retracing with a few thousand dollars in the following weeks, BTC is still about 10% up since the start of 2020.This rapid price appreciation has caused numerous prominent financial experts to assert that bitcoin is in bubble territory. This belief received a confirmation from a survey conducted by Deutsche
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A survey compiled by the multinational investment giant Deutsche Bank concluded that more than half of investors believe bitcoin and US tech stocks to be the biggest market bubbles.
Consequently, the participants, most of whom are professional investors, predicted subsequent corrections.
Bitcoin Is The Biggest Market Bubble?
The primary cryptocurrency has been on a tear since early October 2020. BTC more than quadrupled its value since then to a new all-time high of $42,000. Despite retracing with a few thousand dollars in the following weeks, BTC is still about 10% up since the start of 2020.
This rapid price appreciation has caused numerous prominent financial experts to assert that bitcoin is in bubble territory. This belief received a confirmation from a survey conducted by Deutsche Bank.
After asking 627 market professionals, the study found out that the vast majority consider bitcoin as the “most extreme” bubble case. More than half of the participants gave a rating of ten on a 1-10 bubble scale.
The second highest-rated asset class in this ranking was US-based tech stocks. More specifically, the respondents outlined the shares of Elon Musk’s Tesla.
TSLA’s price has also exploded since mid-2020 from about $280 in August to $845 today. This 200% surge made the company the 7th most valuable firm by market cap and helped Musk in becoming the world’s richest person.
Bitcoin And Tesla To Retrace?
After naming BTC and TSLA as the biggest market bubbles right now, the survey participants offered predictions on their potential price performance. Somewhat expectedly, the majority envisioned impending corrections instead of further increases.
“When asked specifically about the 12-month fate of Bitcoin and Tesla – a stock emblematic of a potential tech bubble – a majority of readers think that they are more likely to halve than double from these levels with Tesla more vulnerable, according to readers.” – Deutsche Bank commented.
Although naming BTC and tech stocks as bubbles that are prone to price corrections, the market professionals failed to provide a reason that could pop them.
In fact, most attributed the US Federal Reserve’s “loose” monetary policy as a supporter of the bubbles and said that the institution is unlikely to tighten its strategy before the end of the year.