According to a Deutsche Bank survey released earlier this Tuesday, the majority of investors still believe Bitcoin is in a “severe bubble” zone. More than half of those surveyed gave the cryptocurrency an 8 to 10 grade.
However, the percentage of people who consider Bitcoin to be the most extreme example of “bubbliness” has decreased significantly since March 2021.
It is worth mentioning that Bitcoin’s price behaviour in 2022 has been exceedingly disappointing. After nine weeks of losses, the cryptocurrency is already down 54.20% from it’s all-time high (a new record).
According to the survey, investors continue to feel that the stock market is frothy. Despite the fact that the Nasdaq 100 index has fallen more than 22.30% year to date, tech equities are still considered a bubble, although a mild one. The great majority of respondents rated the Nasdaq as a 7 or lower. In early 2021, for example, tech stocks were in an “extreme bubble” zone with Bitcoin.
The US equity market remains frothier than the European and Asian markets. According to the poll, other asset classes, such as European government bonds and credit spreads, are also off the hook.
Yet, Bitcoin bulls hope that the market will be able to overcome negative macroeconomic conditions and begin a fresh surge.
According to CryptoQuant analyst Ki-Young Ju, the leading cryptocurrency is unlikely to go below $20,000 due to high-profile institutional investors who will keep its price afloat.
JPMorgan Chase released a research report earlier this month in which it suggested that Bitcoin’s fair value was approximately $38,000.
