A Deutsche Bank survey says Bitcoin and US technology stocks are the biggest bubbles

A Deutsche Bank survey says Bitcoin and US technology stocks are the biggest bubbles

In this pictorial illustration, a visual representation of Bitcoin Cryptocurrency (BTC) is arranged on a hard drive circuit board.

Yuriko Nakao | Getty Images

Bitcoin Investors are looking at US tech stocks as the biggest market bubble right now, according to a Deutsche Bank survey on Tuesday.

The survey, which was based on responses from 627 market professionals between January 13-15, found that the vast majority of investors (89%) believe that some financial markets are in the bubble area.

Among these bubbles, Bitcoin and US technology stocks top the list. Bitcoin is seen as a more extreme case, with half of respondents giving the cryptocurrency a 10 on a bubble scale of 1-10.

Deutsche Bank said US tech stocks were seen as the next biggest bubble, with an average score of 7.9 out of 10 and 83% of respondents giving it a technical rating of 7 or higher.

Investors also believe that Bitcoin and electric vehicle manufacturer Tesla is likely to decline more than to rise over the next year.

“When asked specifically about the fate of 12 months Bitcoin and Tesla – a stock symbolizing a potential technology bubble – the majority of readers believe that they are likely to fall by half from these levels with Tesla being more vulnerable according to readers,” the bank said.

Bitcoin has been on a road trip over the past few months. The world’s largest cryptocurrency by market value has risen to a level All-time highs around $ 42,000 Just two weeks ago Steep slip. It is up more than 800% from its lows in March 2020, when the cryptocurrency erupted on the back of concerns over the coronavirus pandemic.

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Bulls say the digital currency has been supported by growing interest from institutional buyers, as well as the perception that Bitcoin is a safe-haven asset not tied to gold. On the other hand, skeptics argue that Bitcoin is a speculative asset and a market bubble is likely to burst one day.

Meanwhile, Tesla also saw a massive spike in its share price in 2020 that extended into the new year and was crowned CEO. Elon Musk The The richest person in the world. The stock is up over 700% from where it was traded 12 months ago.

Although investors may believe that Bitcoin, Tesla and other US technology stocks are in the bubble territory, it is not clear exactly what will “blow” those bubbles.

Supportive of the “easy monetary stances” in support of the bubbles will likely continue, with 71% of respondents telling Deutsche Bank that they do not believe the Fed will tighten policy before the end of 2021. But a quarter of investors said economic growth or markets may get their hands on it.

More investors say the introduction of coronavirus vaccines did not live up to expectations (41%) of those who said they were better than expected (22%). Slightly more than half of respondents said they had seen life return to normal by the end of the year.

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