After rising to $ 42,000 per bitcoin earlier this month, bitcoin has started a sharp correction that wiped $ 200 billion of its value over the past two weeks.
Bitcoin price, trading below $ 9,000 around this time last year, has risen nearly 300% in the past 12 months, propelling many smaller cryptocurrencies even higher.
Now, Bitcoin has fallen below $ 30,000 early Friday morning after survey data revealed investors fear Bitcoin could halve in the coming year. 50% of respondents gave Bitcoin a rating of 10 on a bubble scale of 1 to 10.
Bitcoin price has risen sharply in recent months, but many investors now see Bitcoin as a bubble.
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When asked whether Bitcoin price is likely to double or halve by January 2022, a majority (56%) of respondents in a Deutsche Bank survey, first reported by CNBC, said Bitcoin was more likely to value halved.
However, some (26%) said that Bitcoin could continue to rise, which means that the huge price rally for Bitcoin in 2020 could go much further.
However, investors aren’t just concerned about Bitcoin. A whopping 89% of the 627 market professionals surveyed between January 13th and 15th believe that some financial markets are currently in the bubble zone.
Stock markets around the world have soared in recent months as governments and central banks pump cash into the system to offset the economic downturn in coronavirus lockdowns.
The US Federal Reserve recently indicated it is nowhere near turning off the taps as US President Joe Biden prepares a new stimulus package worth nearly $ 2 trillion.
Electric car maker Tesla is up a staggering 650% in the last year, putting executive director and cryptocurrency buff Elon Musk at the top of the world’s richest lists. According to investors, it’s even frothy than Bitcoin. 62% say Tesla will cut it in half rather than double it in the coming year.
“When asked about the 12-month fate of Bitcoin and Tesla – a symbol of a potential technology bubble – the majority of readers assume that they will halve rather than double from these levels, with Tesla being more vulnerable according to readers,” said the Deutsche bank analysts wrote.
Due to the enormous price recovery in Bitcoin, the cryptocurrency has almost tripled since that time … [+]
Amid growing fears of bitcoin bubbles, Bank of America BAC has revealed that bitcoin is currently the world’s busiest trade among investors it surveyed.
Bitcoin ousted tech stocks from the top spot for the first time since October 2019, taking second place, investors reported.
The two polls were conducted ahead of Bitcoin’s correction to around $ 30,000 this week, a sign that institutional sentiment has become a real factor in Bitcoin price.
Bitcoin and cryptocurrency market observers are not yet panicking, however. Many previously predicted that a correction would occur after such a large rally.
“The depth of the sell-off will also depend on how fast the price is falling,” said Alex Kuptsikevich, senior financial analyst at FxPro, via email, adding that he does not see any “panic in the market” right now.