In a recent Bank of America (BoA) survey, fund managers view Bitcoin as a bubble asset class.
A recent survey by the Bank of America (BoA) of 224 fund managers with over $600 billion in assets shows that many people do not believe in Bitcoin.
Specifically, around 81% of those surveyed believe that Bitcoin is an asset bubble.
To clarify, many regulators point out that the Bitcoin price is too susceptible to external factors, such as the tweets of billionaire Elon Musk.
This is not the first time the Bank of America has expressed a negative view of Bitcoin.
Last March, the BoA stated that there really is no good reason for Bitcoin to appear in someone’s portfolio. Just a few days later, the organization condemned the Bitcoin mining industry as a waste of energy and causing serious harm to the environment.
Meanwhile, some Wall Street strategists warn that Bitcoin’s downside risks remain high. JP Morgan strategist Nikolaos Panigirtzoglou says Bitcoin’s medium-term fair value is in the $24,000 to $36,000 range.
According to him, the sharp correction in May severely weakened institutional demand for Bitcoin. This is likely to put downward pressure on prices in the short term.
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