74% of Fund Managers See Bitcoin as a Bubble – Markets and Prices Bitcoin News
A recent study by a Bank of America fund manager found that about three in four professional investors think bitcoin is a bubble. Fund managers also ranked bitcoin as the second strongest deal. Recently, investment bank JPMorgan also warned that cryptocurrencies as a sector are in a bubble.
A Bank of America survey shows that most money managers think bitcoin is abubble.
An April Bank of America survey of fund managers found that most consider bitcoin a bubble. The study surveyed 200 fund managers with $533 billion in assets under management.
When asked if bitcoin is a bubble, 74% of investors answered yes. Only 16% said no, and 10% said they didn’t know or didn’t want to answer the question. By comparison, only 7% of investors think the US stock market is a bubble. Most respondents believe that the stock market is in the final phase of a bull market.
Chartshows that 74% of investors who participated in the survey think bitcoin is a bubble. Source: Bank of America Global Research, Yahoo Finance
Fund managers in the survey also ranked bitcoin as the second most traded commodity, with 27% indicating that BTC is the most traded commodity. Technology stocks lead the list, with just over three in ten respondents citing technology as the most traded sector.
However, about 10% of fund managers still think bitcoin will outperform in 2021.
Bank of America has been saying for months that bitcoin is in a bubble. Earlier this year, Michael Hartnett, chief investment strategist at Bank of America Securities, said bitcoin seemed like the mother of all bubbles. The bank’s strategist said in March that the only good reason to hold BTC was a net increase in prices.
Recently, the investment bank JPMorgan also mentioned cryptocurrencies as one of the sectors that it believes are experiencing a bubble. Despite this stance, the company predicted that the price of bitcoin could eventually reach $130,000.
What do you think of Bank of America’s investigation that bitcoin is a bubble? Let us know your comments in the section below.
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