Over 81% of fund managers surveyed by Bank of America believe Bitcoin is a bubble, even after May’s 35% price crash. Notably, the sampled 207 investors have assets worth $645 billion collectively.
81% of Fund Managers Sees Bitcoin as a Bubble
Over four in five (81%) of fund managers called the Bitcoin market a bubble, according to a recent survey published by Bank of America. The poll surveyed a total of 224 fund managers with over $650 billion in assets under management.
In addition, the survey found that investors view Bitcoin as the second most crowded asset behind commodities like oil, gold, silver, and lumber.
The results are up 6% points from last month’s data, indicating sentiment on Wall Street has turned more bearish.
The survey also touched upon inflation with 72% of the sampled investors seeing the ongoing inflationary pressures as transitory. At the same time, 63% expect the U.S. central bank to hint at tapering from August to September.
Richard Bernstein Warns Bitcoin is a Bubble
In a recent interview with CNBC, the CEO and CIO of Richard Bernstein Advisors spoke about the increased popularity of Bitcoin and altcoins.
He reminds that crude oil is up 96% over the last year, but people are still ignorant while Bitcoin might be up 13% over the past week, but it’s still down 35% over the past two months:
“It’s pretty wild. Bitcoin has been in a bear market, and everybody loves the asset. And, oil has been in a bull market, and it’s basically, you never hear anything about it. People don’t care.”
He believes cryptocurrencies are very popular among people without any financial knowledge, which automatically classifies them as a bubble:
“Bubbles differ from speculation in that bubbles pervade society. They go outside the financial markets. Certainly with cryptocurrencies now, and most likely with most technology stocks, you’re starting to see that happen where people are talking about them at cocktail parties.”