Bitcoin, after surging to $ 42,000 per bitcoin, has begun a sharp correction that has seen $ 200 billion wiped out of its value over the past two weeks.
The price of bitcoin, which was trading below $ 9,000 this time last year, has risen nearly 300% over the past 12 months – pushing many smaller cryptocurrencies even higher.
After the bitcoin price dropped below $ 30,000 early Friday morning, survey data shows investors fear that bitcoin could halve over the coming year, with 50% of respondents rating 10 to bitcoin on a 1-10 bubble scale.
When asked if the bitcoin price is more likely to double or half by January 2022, over half (56%) of respondents to the January 13-15 Deutsche Bank survey, first reported by CNBC, said they believe bitcoin is more likely to halve its value.
Although, some (26%) said they thought it could continue to climb, meaning that bitcoin’s massive 2020 rally could have much further to run.
However, it’s not just bitcoin that investors are concerned about. 89% of the 627 market professionals surveyed believe that some financial markets are currently in bubble ground.
Stock markets around the world have soared in recent months as governments and central banks pump cash into the system to compensate for the economic downturn of coronavirus locking.
The US Federal Reserve recently noted that there is nowhere close to thinking about turning off the taps, while US President Joe Biden is preparing a nearly $ 2 trillion fresh stimulus package.
Electric car maker Tesla, up a staggering 650% over the past year and pushes chief executive Elon Musk toward the top of the world’s rich listings, even frothier than bitcoin, according to investors, with 62% notes that Tesla is more likely to halve and double in the coming year.
“When asked specifically about the 12-month fate of bitcoin and Tesla – a stock emblem of a potential technology bubble – most readers think they are more likely to halve than double from these levels with Tesla being more vulnerable according to readers, “Deutsche Bank analysts wrote.
Amid fears of a bitcoin bubble, Bank of America
Bitcoin knocked off tech stocks for the first time since October 2019 and to second place, investors reported.
Both surveys were conducted prior to the correction of bitcoin to around $ 30,000 this week, a sign that institutional sentiment has become a real factor for the price of bitcoin.
“The depth of the sale will also depend on how quickly the price falls,” Alex Kuptsikevich, FxPro’s senior financial analyst, said by email, adding that he does not see “panic in the market at this time when. “