Two new studies show Bitcoin is included in the list of largest market bubbles. Investors think the top digital price would reduce in half over the year.
Deutsche Bank’s survey
Wealthy investors are mostly concerned from two entities, the US tech stocks and Bitcoin, because they are overpriced. Deutsche Bank’s survey takes views of wealthy investors about Bitcoin and other tech stocks, such as Tesla. The stakes are given with 1-10 scale and the entity standing in upward extreme is labeled as biggest bubble.
Bitcoin’s price increased by 300% in while Tesla’s stock surged by 750% last year: both were the top performing assets of 2020. When asked investors about the fate of the top leading asset over the year, they replied that the price value of the flagship cryptocurrency would decrease by 50%.
Similarly, the Bank of America (BofA) also conducted a survey which found out investors bought Bitcoin more while ditching tech stocks. The fund managers found it crowded.
Since drop in Mid-March, the flagship cryptocurrency has surged by more than 900%. In December, the tag value of $20,000 breached and in January 2021, Bitcoin reached new all-time high.
Respondents in the survey seem optimistic for global economy recovery. In actual, the inflation will rise by 92% over the next year. The resistance in vaccine distribution could create serious problems for the financial markets.
According to BofA’s study, almost 19% of investors holding assets worth over $500 billion are involved in taking more risk than normal.
But there are few billionaires who are highly inspired from Bitcoin. They are making great predictions for it in the future. Majority believe the value could reach $100k by the end of the year while the market cap of the leading digital currency could claim $10 trillion.
Gold is being replaced by Bitcoin in few investors’ portfolios. The inflow has started from the gold bullion to the top digital asset. However, investment guru Warren Buffet does not think that Bitcoin has any intrinsic value.
Currently, the top-ranked digital currency is standing at $36,385 after a slight increase of 1.66% in the previous 24-hours. Once it qualifies for $40,000, the next big picture will become clear. Some analysts say it would attain $50,000 by the end January.
The global crypto market cap is currently standing above $1 trillion after surging by 2.78% over the day.