Bitcoin is a bubble, say 74% of investors - survey

Nearly a third of them think cryptocurrency is the most crowded trade

  
A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken March 15, 2021.

A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken March 15, 2021.

REUTERS/Dado Ruvic/Illustration

Cryptocurrency fans may argue that bitcoin is a hot investment option now, but most professional investors think otherwise, according to a new Bank of America (BofA) survey. 

Among those polled in the latest BofA Fund Manager Survey conducted this month, 74 percent think that bitcoin is a bubble, while only 16 percent don’t believe that the leading cryptocurrency is about to burst. 

Bitcoin is the most popular cryptocurrency. One Bitcoin is equivalent to $64515.50 based on today’s price.

In recent months, bitcoin’s value has multiplied, hitting a peak of $57,489 last February and breaking the $60,000 mark this month. With its meteoric rise beating other assets, some analysts predict that bitcoin could strengthen further and hit as much as $130,000.  

BofA’s survey also showed that about a third (27 percent) of professional investors think that bitcoin is the most crowded trade this month. Other crowded trades included long tech (31 percent), long ESG (17 percent), long global cyclical (14 percent) and short US treasuries (9 percent).

Coinbase, the largest cryptocurrency exchange in the US, is scheduled to go public on Nasdaq today. 

The respondents polled for the BofA survey, which include chief investment officers, asset allocators and portfolio managers, have $530 billion in assets under management. 

(Reporting by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021

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