Bitcoin, US tech stocks are biggest bubbles, Deutsche Bank survey says


In this photo illustration, a visual representation of the digital cryptocurrency bitcoin (BTC) is arranged on a circuit board of the hard drive.

Yariko Nakao | Getty Images

According to Deutsche Bank’s survey released on Tuesday, bitcoin and US tech shares are seen by investors as the biggest market bubble.

The survey, which is based on the responses of 627 market professionals between January 13–15, found that the majority of investors (89%) think that some financial markets are in the bubble zone.

Among those bubbles, Bitcoin and US Tech shares topped the list. Bitcoin is seen as a more extreme case, with half of the respondents rating cryptocurrency a 10 on a 1–10 bubbles scale.

US Tech shares were seen as the next biggest bubble, Deutsche Bank said, with an average score of 7.9 out of 10 and 83% of respondents giving it a tech bubble rating of 7 or higher.

Investors also think that bitcoin and electric car maker Tesla are more likely to fall than next year.

“When specifically asked about the 12-month fortunes of Bitcoin and Tesla – a stock symbol of a potential tech bubble – the majority of readers think they are more than twice as likely to level with Tesla as readers. More vulnerable according to, “Deutsche Bank said.

Bitcoin has been on a wild ride during the past few months. The world’s largest cryptocurrency by market value rose two weeks ago to an all-time high of about $ 42,000. This is more than 800% from the March 2020 lows, when cryptocurrency cratered on the back of concerns about the coronovirus epidemic.

Bulls says the increased interest from constitutional buyers has led to the digital coin buzzing, as well as the notion that bitcoin is a well-protected asset, just like gold. On the other hand, there is suspicion that bitcoin is a speculative asset and the market is likely to explode one day.

Meanwhile, Tesla also saw a steep jump in its share price in 2020, which increased in the new year and crowned its CEO Elon Musk the richest person in the world. The stock is over 700% from where it was trading 12 months ago.

Although investors may think of Bitcoin, Tesla and other US tech stocks in the bubble zone, it is not clear exactly what those bubbles might “pop”.

“Easy monetary conditions” are likely to remain supporters of the bubble, with 71% of Deutsche Bank respondents saying they do not believe the Federal Reserve will strengthen policy before the end of 2021. But a quarter of investors said that economic growth or market could force their hand.

More investors say that the roll-out of coronovirus vaccines is lower than expectations (41%), who said it is better than expected (22%). More than half of the respondents said that they saw life returning to normal by the end of the year.

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