The most recent Bank of America fund manager survey shows that about three in four professional investors think bitcoin is a bubble. Fund managers also ranked Bitcoin second on the list of most crowded transactions. Recently, investment bank JPMorgan also warned that cryptocurrency as a sector is in a bubble.
Bank of America survey shows most fund managers think Bitcoin is a bubble
The Bank of America’s April Fund Manager Survey shows the majority of fund managers view bitcoin as a bubble. The survey questions 200 fund managers with $ 533 billion in assets under management.
Responding to the question of whether bitcoin is a bubble, 74% of investors answered “yes”. Only 16% answered “no” to the question and 10% said they did not know or did not want to answer the question. In comparison, only 7% of investors think the US stock market is in a bubble. Most respondents think that the stock market is in “an advanced bull market”.
Fund managers who responded to the survey also ranked bitcoin second on the list of the most crowded trades, with 27% saying BTC was the most crowded trade. Tech stocks rank first with just over three in 10 respondents citing technology as the most crowded trade.
Still, around 10% of fund managers still believe bitcoin will outperform in 2021.
Bank of America says bitcoin has been in a bubble for months. Earlier this year, Michael Hartnett, chief investment strategist at Bank of America Securities, said bitcoin looks like “the mother of all bubbles.” In March, the bank’s strategist said the only good reason to hold BTC was “sheer price appreciation.”
Recently, investment bank JPMorgan also named cryptocurrency as one of the sectors it says is in a bubble. Despite this view, the firm predicted that the price of bitcoin could reach $ 130,000 in the long run.
What do you think of the Bank of America investigation suggesting bitcoin is a bubble? Let us know in the comments section below.
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