Bitcoin
$48,611.37+2.40%
Ethereum
$3,520.88+2.13%
XRP
$1.09+2.47%
Cardano
$2.42+1.85%
Polkadot
$35.17+2.30%
Stellar
$0.325919+1.73%
Dogecoin
$0.244748+1.28%
Chainlink
$29.32+3.53%
Uniswap
$25.03+1.07%
Polygon
$1.40+5.66%
Litecoin
$183.53+1.21%
Bitcoin Cash
$636.09+1.78%
Algorand
$1.98+0.06%
Wrapped Bitcoin
$48,644.28+2.35%
Cosmos
$36.50+7.60%
Filecoin
$85.25+4.44%
The Graph
$0.845685+2.99%
Tron
$0.107585-0.92%
Ethereum Classic
$57.91+2.00%
Aave
$366.49+0.65%
Tezos
$6.34+1.08%
EOS
$5.27+2.82%
NEO
$49.97+1.77%
Monero
$268.41+2.80%
IOTA
$1.66+10.28%
BitTorrent
$0.003991+1.78%
Bitcoin SV
$158.44+1.11%
Waves
$29.57+1.16%
Maker
$2,895.28+2.74%
Dash
$204.96+2.78%
Decred
$148.27+0.87%
Decentraland
$0.832130+2.15%
ICON
$1.96+4.28%
NEM
$0.185823+1.83%
Zcash
$141.07+4.66%
Qtum
$12.71+2.09%
NuCypher
$0.333649+1.10%
Bitcoin Gold
$67.43+2.57%
Yearn Finance
$34,387.66+2.62%
OmiseGO
$8.76+5.78%
Basic Attention Token
$0.769178+2.02%
0x
$1.11+3.64%
Paxos Standard
$1.00+1.04%
Ren
$1.03+8.40%
Fetch.ai
$0.864902+0.55%
Bancor
$4.17+2.72%
Band Protocol
$9.41+2.21%
Siacoin
$0.019136+5.13%
Kava.io
$6.30+2.69%
Nano
$5.59+3.02%
Loopring
$0.463766+2.09%
Storj
$1.41+2.69%
Numeraire
$49.56+15.29%
Civic
$0.542819+0.02%
Lisk
$3.62+2.25%
Orchid
$0.368712+1.07%
PAX Gold
$1,763.94-0.27%
Augur
$26.42+2.22%
Aragon
$6.10+5.02%
Enzyme
$119.05+5.57%
district0x
$0.179646+2.33%
Kyber Network
$1.85-0.85%
SingularDTV
$0.001400+6.58%
Tether
$1.00-0.01%
USD Coin
$1.00+0.00%
Dai
$1.00+0.02%

A Year After Coronavirus Meltdown, Few Investors See Risk of Deflation: Deutsche Bank

Inflation remains a key focus, according to a survey of global investors, although risk of a "Fed taper" appears low.

Apr 26, 2021 at 9:02 p.m. UTC
Updated Sep 14, 2021 at 12:46 p.m. UTC

Think back to April 2020, when coronavirus-related lockdowns were hitting the global economy hard, and only the most sanguine optimists – and politicians – saw any likelihood of a rapid reopening and rebound.

At that point, the risk of deflation loomed large in the minds of many investors because of the steep drop-off in consumer demand. Prices for bitcoin, (BTC), seen by some cryptocurrency traders as a potential hedge against inflation, stagnated below $10,000, even though central banks around the world were printing trillions of dollars of fresh money.

A year later, the mentality has changed radically: With vaccines rolling out and economists now projecting a buoyant recovery, four in five investors see inflation as far more likely than deflation, according to a new survey by German lender Deutsche Bank.

It's the second month in a row investors have logged such an overwhelming position, and so the idea appears to be sticking. Perhaps not coincidentally, bitcoin prices are now over $50,000.

“A vast majority (81%) agree that inflation is more likely after the pandemic while only 10% thought we would see deflation,” according to Deutsche Bank. The survey was conducted earlier this month and covered about 700 global investors.

Some 43% of investors responded that higher-than-expected inflation and rising bond yields pose the biggest risks to market stability, according to Deutsche Bank.

  • Most respondents see U.S. inflation averaging above the U.S. Federal Reserve’s long-term target of 2%, but remaining under 3%.
  • About 61% respondents saw no risk of major market convulsions this year due to any plans by Federal Reserve officials to taper their asset purchases of $120 billion per month.
  • In 2013, a Federal Reserve-induced “taper tantrum” sent traditional markets into a tizzy.
  • Some 21% said a taper tantrum would happen this year, while 18% said they didn't know.

Chart shows a majority of respondents do not expect a Fed taper to be a major market event.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...