Most professional investors believe that Bitcoin is just a bubble. At least, this is the result of the study Bank of America Fund Manager.
Bank of America Fund Manager has researched the BTC investor market
About 74% of people who took part in the survey said they perceive the leading cryptocurrency as a bubble. Only 16% answered otherwise.
Fund managers also ranked Bitcoin as the second most popular asset – right after tech stocks. The cryptocurrency has far outstripped ordinary stocks and US Treasury bonds.
Slightly more than three out of 10 respondents indicated technology companies as the most popular industry among investors, and 27% indicated BTC.
About 10% said they believe Bitcoin will perform better in 2021 than what we have seen so far.
The results are from a survey of 200 people who will manage assets worth $ 533 billion.
The biggest ones buy BTC
The results of the study have been published now, i.e. at a time when the largest investors are investing in cryptocurrencies, and the shares of Coinbase, one of the most important platforms for buying BTC, are debuting on the stock exchange. The company has 56 million verified users and posted revenue of $ 1.8 billion for the first quarter.
Bitcoin’s price has increased nearly ninefold in the last year. In the background, there was a speculator frenzy, but also universal acceptance. Tesla founder Elon Musk, for example, admitted earlier this year that his company would adopt Bitcoin as a new form of payment for its cars.
However, the Bank of America study also showed that investor fears change as the political and market developments evolve.
Until a few months ago, when Covid-19 was spreading fear in the markets, investors were afraid that the government’s monetary policy, as a response to the pandemic and lockdown, would lead to a spike in inflation. It was then that a large number of analysts and investors began to view Bitcoin as a hedge against inflation and essentially a place to store money during a crisis. As you can see, the narrative about “digital gold” is slowly fading away. The association of BTC with pure speculation returns, which is not a complete picture of the cryptocurrency market.