Bank of America recently asked 200 professional investors with $533 billion in assets under management for their opinions on Bitcoin.
According to the survey that Bank of America conducted, findings show that a majority of professional investors are quite skeptical about the world’s largest cryptocurrency.
A staggering 74% of respondents to the Bank of America Fund Manager Survey for April said that they see the leading cryptocurrency as a bubble when asked the question. Only 16% said no to the question.
Suggestible questioning can be deceiving. While there is a point to be made about the validity of the technique used in this survey, the results can indicate the speculative ground that the investors see Bitcoin on.
The results do not quite match the bullish outlook of the industry, including financial institutions and banks, who actually just started offering exposure to its clients. The latest survey results point to Bitcoin being “exceptionally volatile,” “impractical” and an environmentally disastrous asset.
Over 30% of survey respondents cited Tech as the most crowded trade, which is an asset with a history of rapid price appreciation and a high number of like-minded, speculative investors. 27% of respondents said that Bitcoin is the most crowded trade right now. 10% predicted that Bitcoin will outperform Tech in 2021.
The results seem conflicting with recent developments in the U.S. banking sector. So far an increased adoption is ongoing and the large investment firms now offering its customers exposure to Bitcoin. GoldMan Sachs are keeping a close eye on Bitcoin and have already reopened their crypto-trading desk. JPMorgan Chase is advising clients to hold a minimum of 1% of their portfolio in cryptocurrencies such as Bitcoin. Recently the Managing Director of the United States’ largest investment bank made some “bullish” remarks. According to him, Bitcoin’s decreased volatility is acting as a pull-factor because investments in Bitcoin simply becomes less risky. He predicts a BTC price of $130,000 to be within range.
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