Bank Of America’s New Report Shows That Bitcoin Is In A Bubble

Like every typical crypto asset, Bitcoin continues to rise and fall, despite all the hype surrounding the cryptocurrency. Since its inception, the cryptocurrency has suffered a mix of fortunes, as its price volatility has continued to derail the digital asset’s image. However, that does not change the status quo that the digital asset has remained the most successful cryptocurrency in the Blockchain space. The digital asset has witnessed an astronomical price increase of more than 800% since January 2020. Unfortunately, the recent performance of the cryptocurrency has been plagued by its price volatility, which has continued to malign the growth of the asset.

The survey showed that people are still optimistic about the future of Bitcoin

In a new survey by the Bank Of America, they believe that many fund managers think the digital asset is in a bubble state. The conclusion was not reached without a figure projection as 74% of the survey participants think the digital asset is in a bubble. These fund managers believe that the digital asset is in a crowded market and is currently over-hyped. Fortunately, not everyone thinks the same, as 10% of the survey participants believe that the digital asset will rise above its price fluctuations and perform extraordinarily well in the last quarter of the year.

Unfortunately, this is not the first time that the digital asset has been labeled such, as the Chief Investment Strategist of the bank- Micheal Hartnett, told the press that the digital asset is in a great bubble earlier in January. In his speech back then, the investment manager believes that many Bitcoin investors only buy the asset to hold and sell when the price is high. Hartnett does not see the digital asset as one that can be traded like traditional assets and does not see a change in the trend of how investors handle the asset.

Bitcoin analysis

Unfortunately, the words of Hartnett and the Bank of America have been echoed by JP Morgan analysts who believe that the digital asset has always been in a bubble and that its investors turn a blind eye to reality. The digital asset continues to be the most coveted by many retail and institutional investors, as its fortunes continue to be attractive. Institutional players have taken the mantle off retail investors, as vast purchases of the digital assets by Tesla, Microstrategy, and Square continue to pave the way for other institutional investors to commit part of their treasury to invest in the digital asset.

The price volatility of the digital asset continues to headline most of the criticism it gets from its critics. The digital asset, after hitting several ATHs this year, had seen its price hit unprecedented lows. Since last weekend, the digital asset had started a downward trend, like the one in February where it shed almost $10,000 in one day. The asset has fallen from its highs of $65,000 last week and currently trades at $49,000, much to the dismay of its investors.

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