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Tesla, Bitcoin More Likely To Halve Than Double Value In 2021: Deutsche Bank Survey

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Tesla, Bitcoin More Likely To Halve Than Double Value In 2021: Deutsche Bank Survey

Tesla Inc. (NASDAQ: TSLA) and Bitcoin (BTC) are more likely to see their values halved than doubled over the period of next 12 months, according to the majority of respondents in a Deutsche Bank survey published Tuesday.

What Happened: Deutsche Bank surveyed 627 market professionals last week, with 89% of respondents saying they find some financial markets to be in the bubble territory, as first reported by CNBC.

“When asked specifically about the 12 month fate of Bitcoin and Tesla — a stock emblematic of a potential tech bubble — a majority of readers think that they are more likely to halve than double from these levels with Tesla more vulnerable according to readers,” Deutsche Bank said, as per CNBC.

The survey respondents rated Bitcoin 10 out of 10 on the bubble scale while U.S. tech stocks overall got a score of 7.9.

See also: How to Buy Bitcoin (BTC)

Nevertheless, Deutsche Bank noted that survey respondents see “easy monetary situations” as likely to continue through 2021 with the Federal Reserve unlikely to tighten monetary policy before the year is out.

Why It Matters: Bitcoin’s spectacular rally saw it hit an all-time high of $41,429.38 on Jan. 8 from trading below the $10,000 level in July last year.

The apex cryptocurrency has since cooled-off, trading at around $35,962 at press time.

According to JPMorgan analysts, Bitcoin could cross the $40,000 mark again in the coming weeks if investor interest in Grayscale Bitcoin Trust (OTC: GBTC) remains high. If that fails to happen, the cryptocurrency risks further crash.

Tesla too has seen a massive 700% over the trailing one-year period, with Elon Musk becoming the world’s richest person — overtaking Amazon.com Inc.’s (NASDAQ: AMZN) Jeff Bezos. 

Nevertheless, the EV maker continues to inspire optimistic price targets from analysts, with Wedbush’s Daniel Ives giving a bull case target of $1,250.

See Also: Chasing Tesla, Major Tech Companies Team With Automakers To Enter EV Space

Price Action: Tesla stock closed 2.23% higher at $844.55 on Tuesday, and traded about 0.15% lower in the after-hours.

 

Related Articles (TSLA + GBTC)

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