More than half of the market professionals polled in Deutsche Bank’s latest investor survey think bitcoin and tech stocks – namely electric-car maker Tesla – are at the top of the list of bubbles in the financial markets.
- The research, conducted from Jan. 13–15, indicated that 89% of the 627 market professionals polled think certain financial markets are currently caught in a bubble, as reported by CNBC on Tuesday.
- Of all respondents, 56% believed bitcoin is more likely to halve in value over the next 12 months. An even larger 62% thought Tesla would see the same drop.
- Bitcoin is viewed as an extreme case by half of the respondents, who rated the top cryptocurrency by market value at 10 on a 1–10 bubble scale.
- However, around a quarter of respondents believed bitcoin could likely double in value by the same time next year, meaning its price tag could sit somewhere north of $70,000.
- More than two thirds of the professionals surveyed believe the U.S. Federal Reserve will not end its stimulus program before the end of 2021 – a possible catalyst for further growth in the fintech sector.