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Deutsche Bank Survey Reveals That Investors Believe Bitcoin May Halve

January 19, 2021 at 21:25 by Ibrahim Anifowoshe

According to a new survey by Deutsche Bank where the Bank recorded the opinions of investors on Bitcoin, many of the respondent felt Bitcoin was more likely to halve than double in Value.

When asked if they thought Bitcoin or Tesla would double or halve, more than half of the people who took the survey, about 56%, responded that Bitcoin would halve in value. While 62% said Tesla was likely to halve.

Managing Editor of Yahoo Finance, Sam Ro, tweeted:

More than half of people surveyed by Deutsche Bank think Bitcoin and Tesla are more likely to halve than double.

Respondents to the survey also showed believe that the markets are currently facing bubbles. 89% responded that the US technology stocks and Bitcoin are in a bubble, with the flagship cryptocurrency closing in on “extreme bubble” territory.

Notwithstanding the outcome of the survey, it appears Bitcoin continues to gain confidence among institutional investors. On 18 January, Grayscale, the world’s largest crypto hedge fund manager purchased $16,244 BTC. Making Grayscale one of crypto’s biggest institutional buyers.

In the recent Bank of America’s monthly fund manager survey, Bitcoin bagged the most crowded trade, trumping over big tech stocks. This was the first time since October 2019.

Bitcoin surged 300% last year and electric vehicle maker Tesla soared nearly 750%, emblematic of highly priced tech stocks. However, the Deutsche Bank survey shows that 71% investors do not believe that the Federal Reserve will go back on it’s stimulus plans before year-end.

Many share the believe that the current bull rally of Bitcoin is due to fear about possible incoming inflation and fears of of a devalued dollar. This concerns relate to the Fed’s intention to pump more money. A record 92% expected higher global inflation over the next year.

Reuters mentioned that:

Investors were bullish on the outlook for world growth, with the proportion of fund managers surveyed by BofA who said the global economy was in an early-cycle phase, as opposed to a recession, at its highest in 11 years.

Earlier this month, the cryptocoin hit a record high $40,000 regaining tremendously over 900% from last year’s March low. At 9:01 GMT on Tuesday, Bitcoin traded at $36.5k.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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