The most late-model Bank of America Fund Manager Survey shows that about three out of four professional investors assume that bitcoin is a bubble. The fund managers also rated bitcoin second on the list of the most crowded exchanges. Recently, investment bank JPMorgan also warned that cryptocurrency as a sector is in a bubble.
Bank of America Inspection Shows Most Fund Managers Think Bitcoin Is a Bubble
The Bank of America Fund Manager Survey for April musicals that the majority of fund managers see bitcoin as a bubble. The survey asks 200 fund managers with $533 billion in assets supervised management.
Answering the question of whether bitcoin is a bubble, 74% of investors replied “yes.” Just 16% said “no” to the absurd and 10% said they either did not know or did not want to answer the question. In comparison, only 7% of investors deem that the U.S. equity market is in a bubble. Most respondents think that the equity market is in “a late-stage bull store.”
The fund managers who responded to the survey also rated bitcoin second on the list of the sundry crowded trades, with 27% said BTC was the most crowded trade. Technology stocks rank first with just atop of three in 10 respondents citing tech as the most crowded trade.
Nonetheless, about 10% of fund executives still believe that bitcoin will outperform in 2021.
Bank of America has been saying that bitcoin is in a froth for months. Earlier this year, Michael Hartnett, chief investment strategist at Bank of America Securities, said that bitcoin looks peer “the mother of all bubbles.” In March, the bank’s strategist said that the only good reason for holding BTC is “sheer expenditure appreciation.”
Recently, investment bank JPMorgan also named cryptocurrency as one of the sectors it believes is in a bubble. Despite this position, the firm has predicted that the price of bitcoin could reach $130,000 in the long term.
What do you think here the Bank of America survey suggesting that bitcoin is a bubble? Let us know in the comments section below.
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