Investors Rank Bitcoin High on the Market Bubble List

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Bubble in the finance world

With Bitcoin’s price flying high over $30,000 right now, it has shattered crypto price records right and left in a very tough time in the world. The leading cryptocurrency emerged as one of the world’s top assets in the past year when no one expected it. The coronavirus pandemic has made things hard for gold, the American dollar, and other assets, yet Bitcoin flew higher after hitting dangerous lows last year.

With the 2017 bubble burst still fresh in memory, many believe that the latest Bitcoin price hike will eventually come to an end. Of course, there are also supporters of the theory that BTC will only go forward from here, but according to Bitcoin investors, Bitcoin and the UK tech stocks market are in bubble territory.

A Very Extreme Case

According to a recent Deutsche Bank survey, nearly 90% of investors believe that Bitcoin is in bubble territory and will eventually burst just like it did almost 4 years ago. The same people believe the US tech stocks market, which is flying high as well, is in the same territory. Investors believe that Bitcoin and tech giants such as Tesla will most likely halve in price over the next year instead of going up. This is concerning news about BTC’s price which has been on a roll in the past 6+ months.

Since hitting lows in early 2020, Bitcoin’s price has been spurred by the coronavirus pandemic. In a time where other assets have become increasingly unstable, people have invested in Bitcoin and it has paid off. Crypto mining is reaching all-time highs and with it, the price went well over $30K. BTC’s price jump has influenced the price of altcoins too, with many reaching personal highs as well.

The survey was based on nearly 650 market professionals. It took place in mid-January and revealed that almost 90% of investors believe that Bitcoin is a bubble the will eventually burst. On the volatility scale, it was given a rating of 10/10. The next most volatile bubble market were US tech stocks which scored 7.9/10 on the same scale.

Over the next 12 months, the surveyed professionals listed Bitcoin and Tesla as the biggest losers. They expect both to halve price instead of going up.

A Wild Ride

In the past 12 months, Bitcoin has been on a wild ride. The effects of the COVID-19 pandemic have helped it climb to over $40,000 after which it slipped. BTC’s price is almost 800% up from the March 2020 lows when many were concerned that cryptocurrencies are coming to an end.

That didn’t happen, obviously, with many governments and organizations backing BTC and cryptos in general. The increased risk of institutional buyers led to a bull run that hasn’t stopped for a while. Many people believe that Bitcoin is a safe-haven asset similar to gold.

Tesla has been on the rise in 2020 with its stocks up by 700% in the past 12 months. It remains to be seen if the Deutsche Bank survey is right or both BTC and Tesla will continue their upward climb.

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January 20, 2021: • No Comments

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