Nearly 90% Investors See Bitcoin & US Tech Stocks as Bubbles: Deutsche Bank Survey
Almost 90% of Deutsche Bank’s monthly market professionals survey respondents said the financial markets are experiencing a number of price bubbles.
These bubbles include that of Bitcoin and US tech stocks that top this list.
Since the March sell-off, the Bitcoin price has gained more than 10x, and in January, it hit a new all-time high at $42,000 amidst the money printing by central banks around the world and interest rates lowered to zero and sub-zero level.
The respondents also see the value of Bitcoin halved in the next 12-months. They share the same feelings for Elon Musk’s Tesla, which surged 11.2x since the March sell-off to hit the $880 peak earlier this month.
As per the study, 71% of the 627 investors surveyed did not think the US Federal Reserve would cut down its stimulus before the year ends.
In a similar survey conducted by Bank of America, long Bitcoin replaced long positions in US tech stocks as the most crowded trade in January, with the short dollar at the third place. 18% of these investors also see the Wall Street bubble as one of the tail risks to the economy.
A record 92% of BofA investors also expect higher inflation and a record 83% steeper yield curve while being bullish on global growth.