The most recent Bank of America Fund Manager Survey shows that about three out of four professional investors think that bitcoin is a bubble. The fund managers also rated bitcoin second on the list of the most crowded trades. 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 Fund Manager Survey for April shows that the majority of fund managers see bitcoin as a bubble. The survey asks 200 fund managers with $533 billion in assets under management.
Answering the question of whether bitcoin is a bubble, 74% of investors replied â€œyes.â€ Just 16% said â€œnoâ€ to the question and 10% said they either did not know or did not want to answer the question. In comparison, only 7% of investors think that the U.S. equity market is in a bubble. Most respondents think that the equity market is in â€œa late-stage bull market.â€
The fund managers who responded to the survey also rated bitcoin second on the list of the most crowded trades, with 27% said BTC was the most crowded trade. Technology stocks rank first with just over three in 10 respondents citing tech as the most crowded trade.
Nonetheless, about 10% of fund managers still believe that bitcoin will outperform in 2021.
Bank of America has been saying that bitcoin is in a bubble for months. Earlier this year, Michael Hartnett, chief investment strategist at Bank of America Securities, said that bitcoin looks like â€œthe mother of all bubbles.â€ In March, the bankâ€™s strategist said that the only good reason for holding BTC is â€œsheer price appreciation.â€
Recently, investment bank JPMorgan also named cryptocurrency as one of the sectors it believes is in a bubble. Despite this view, the firm has predicted that the price of bitcoin could reach $130,000 in the long term.
What do you think about the Bank of America survey suggesting that bitcoin is a bubble? Let us know in the comments section below.
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