The bitcoin price, which was trading at under $9,000 this time last year, has risen almost 300% over the last 12 months—pushing many smaller cryptocurrencies even higher.
Now, bitcoin has dipped under $30,000 early Friday morning after survey data revealed investors are fearful bitcoin could halve over the coming year, with 50% of respondents giving bitcoin a rating of 10 on a 1-10 bubble scale.
When asked if the bitcoin price is more likely to double or half by January 2022, a majority (56%) of respondents to a Deutsche Bank survey, first reported by CNBC, said they believed bitcoin is more likely halve in value.
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Although, some (26%) said they think bitcoin could continue to climb, meaning bitcoin’s huge 2020 price rally could have far further to run.
It’s not just bitcoin that investors are worried about, however. A whopping 89% of the 627 market professionals polled between January 13 and January 15 think some financial markets are currently in bubble territory.
Stock markets around the world have soared in recent months as governments and central banks pump cash into the system to offset coronavirus lockdown economic downturns.
The U.S. Federal Reserve recently indicated it’s nowhere near thinking about turning off the taps, while U.S. President Joe Biden is preparing a fresh near-$2 trillion stimulus package.
The electric car-maker Tesla has surged a staggering 650% over the last year, pushing chief executive and cryptocurrency fan Elon Musk toward the top of world’s rich lists, and is even frothier than bitcoin, according to investors, with 62% indicting Tesla is more likely to half than double in the coming year.
“When asked specifically about the 12 month fate of bitcoin and Tesla—a stock emblematic of a potential tech bubble—a majority of readers think that they are more likely to halve than double from these levels with Tesla more vulnerable according to readers,” Deutsche Bank analysts wrote.
Amid growing bitcoin bubble fears, Bank of America BAC has revealed bitcoin is currently the world’s most crowded trade among investors it surveyed.
Bitcoin knocked tech stocks off the top spot for the first time since October 2019 and into second place, investors reported.
The two surveys were carried out ahead of bitcoin’s correction to around $30,000 this week, a sign that institutional sentiment has become a real factor for the bitcoin price.
However, bitcoin and cryptocurrency market watchers aren’t panicking just yet, with many previously predicting a correction was bound to occur after such a big rally.
“The depth of the sell-off will also depend on how fast the price falls,” Alex Kuptsikevich, FxPro senior financial analyst, said via email, adding he doesn’t currently see “panic in the market.”