Nearly 75% of professional investors see Bitcoin as bubble: survey
Bank of America has released a new study showing that most professional investors are not very optimistic about the world’s largest cryptocurrency.
Nearly 75 percent of respondents to a survey conducted in April by fund manager BofA said they considered bitcoin a bubble, reports CNBC.
The survey involved 200 respondents representing $533 billion in assets under management. Only 16% of respondents said bitcoin was not a bubble, while 10% were unsure.
Source: Yahoo Finance/BofA Global Fund Manager Survey
More than 30% of respondents cited technology as the most competitive sector, an asset that has seen rapid price appreciation and has a large number of like-minded speculative investors. 27% of respondents said bitcoin is currently the most contentious business, while 10% predicted BTC will overtake technology by 2021.
BofA previously published a study showing that long bitcoin replaced long tech as the most active trade in January 2021.
BofA’s latest research shows considerable scepticism about bitcoin after the bank’s analysts recently said the cryptocurrency was a highly volatile, impractical and environmentally disastrous investment.
Other major US banks are more optimistic about digital assets. After Goldman Sachs announced that as of March 2021, 40% of its customers are already engaged in crypto, the investment bank announced that it is preparing a bitcoin product. Also in March, JPMorgan announced a cryptocurrency debt basket with a portfolio containing shares of companies that hold bitcoin as a Treasury asset.
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