Bitcoin and Tesla are bubbles ready to burst. This is the opinion of those who responded to a monthly survey of investors conducted by Deutsche Bank.
Of particular concern to those who participated in the survey are precisely Bitcoin and Tesla, protagonists of extraordinary rallies in the year just ended.
Suffice it to say that Bitcoin in 2020 recorded a gain of +300% while Tesla did even better, with a performance of over +700%.
More than half of people surveyed by Deutsche Bank think Bitcoin and Tesla are more likely to halve than double.
According to Sam Ro, analyst at Yahoo Finance, 25% of respondents believe that the price of Bitcoin Evolution could double but 56% think it could halve. 19%, on the other hand, do not answer.
As for Tesla, only 18% are optimistic and believe the stock could double, 62% instead believe their price could halve, while 20% say they don’t know.
In addition, when asked, „Currently, there are a lot of bubbles in the financial market,“ 52% said they fairly agreed, 37% very agreed, 6% fairly disagreed, while only 1% totally disagreed. A remaining 5% said they neither agreed nor disagreed.
Even more significant is the last chart that asked investors to rate on a scale of 0 to 10 the possibility that certain assets are bubbles. Well, in this „ranking“ Bitcoin itself stands out, with a score of 8.7. Then follow the shares of US tech companies, with a score of 7.9.
In short, it seems that investors, at least those consulted by the German bank, do not have confidence in those who dominated the market in 2020: Bitcoin, Tesla and tech companies.
Bitcoin, Tesla and the risk of bubbles
But does this lack of confidence have any basis? As for Bitcoin, it has staged a rally in recent weeks that brought it up to an all-time high of $42,000, but then retraced to the current $35,500.
On Bitcoin, however, weighs the growing demand of institutional investors, on the one hand, and on the other the entry of PayPal in the sector, which has expanded the retail users (even if for the moment the purchase and sale of cryptocurrency is only available in the United States). All reasons that should support Bitcoin’s price growth.
Tesla, on the other hand, is in a different position. It has presented itself as the leader of the electric car market, offering a high-tech product. However, from this year it will also start to feel the competition. A possible opponent could become Apple. This factor may not please investors.
As always, the market is sovereign and will decide if Deutsche Bank investors are right or not.