Bitcoin is still in bubble despite facing massive correction, says new Deutsche Bank survey
A Deutsche Bank survey released earlier on Tuesday shows that the majority of investors still believe Bitcoin is in “extreme bubble” territory.
More than half of the respondents gave the cryptocurrency a rating from 8 to 10.
Yet the share of those who view Bitcoin as the most extreme case of a “bubble” has dropped significantly compared to March 2021.
It is worth noting that Bitcoin’s price action has been extremely underwhelming in 2022. The cryptocurrency is currently down 54.20% from its record high after recording nine consecutive weeks of losses (a new record).
The survey shows that investors continue to believe there is scum in the stock market. Despite the fact that the Nasdaq 100 index is down more than 22.30% year-to-date, tech stocks are still seen as a bubble, but not extreme. The vast majority of respondents gave the Nasdaq a rating of 7 or lower.
In early 2021, for comparison, tech stocks were in “extreme bubble” territory right next to Bitcoin.
The US equity market remains more frothy compared to European and Asian stocks. Other asset classes, such as European government bonds and credit spreads, are also off the hook, according to the survey.
Yet, Bitcoin bulls believe that the market will be able to successfully weather unfavorable macroeconomic conditions and start a new rally.
As reported by U.Today, CryptoQuant analyst Ki-Young Ju believed that the major cryptocurrency is unlikely to fall below $20,000 due to high-profile institutional investors who would keep its price afloat.
Earlier this month, American banking giant JPMorgan released a research note, in which it stated that Bitcoin’s fair valuation was around $38,000.
