According to the findings of a recent Bank of America (BOA) survey, bitcoin buying has now surpassed tech stocks as the busiest transaction. This new ranking means that technology stocks have been relegated to second place for the first time since October 2019.
Still, a majority of the fund managers interviewed believe that bitcoin is “in a bubble”. Consequently, like the Reuters report notes, a majority of these respondents predict that bitcoin’s value will halve within 12 months.
Since the beginning of 2021, bitcoin’s value is up 30% from just under $ 29,300 to its all-time high (ATH) of over $ 41,900 on Jan. 8. This 30% increase in value after only 8 days follows the price increase of the crypto. by more than 300% in 2020. At the time of writing, however, bitcoin is trading for only $ 34,400.
Meanwhile, another study from Deutsche Bank shows that many investors currently see bitcoin as the number one bubble. For example, when asked to rank bitcoin on the scale of 1-10, nearly half of the respondents gave the crypto asset a 10. Tesla is the next asset to be labeled a bubble by respondents after the share of the crypto asset. technology giant is up nearly 750%. . “Tesla” is seen as a symbol of high-priced technology stocks. “
However, in sentiments similar to those of the BOA survey respondents, a majority of the Deutsche Bank study respondents predicted that bitcoin and Tesla stocks are “more likely to halve than double in value in the next twelve months. “.
Risk aversion for investors
Meanwhile, the BOA study says in other findings that “a record 19% of investors are currently taking more risk than usual in their investment portfolios.” The survey also found that “some of the fund managers surveyed by BOA who said the global economy was in an early cycle, as opposed to a recession, at its highest level in 11 years.”
Additionally, a record 92% expected higher global inflation for the coming year, although Deutsche Bank’s survey also showed that 71% expected the U.S. Federal Reserve to resist the temptation to remove the stimulus that helped markets recover to take.
Would you agree that bitcoin is the number one bubble for tech stocks? Tell us what you think in the comments section below.
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