While Bitcoin rates jumped to a fresh higher of above $64,000 on Wednesday as Coinbase’s direct listing on Nasdaq fuelled investors’ interest in the cryptocurrency, a majority of fund managers believed Bitcoin to be merely a bubble. That’s at least according to the April 2021 Global Fund Manager Survey by Bank of America. The month-to-month survey, which canvasses thoughts of about 200 institutional, mutual, and hedge fund managers globally, showed that 74 per cent respondents believed Bitcoin to be a bubble when only 16 per cent disagreed with the notion. Bitcoin was trading at a small more than the $63,000-mark at the time of filing this report, as per information from Coindesk.
The survey also noted that a extended position on bitcoin was noticed to be the second most crowded trade by 27 per cent respondents just after technologies stocks (31 per cent) but ahead of environmental, social and corporate governance (ESG) (17 per cent), cyclical stocks (14 per cent), and US treasuries (8 per cent). A extended position is referred to getting an asset hoping its worth will improve more than time. Moreover, about 10 per cent respondents anticipated Bitcoin to outperform other assets in 2021.
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Bitcoin has very exploded more than the previous 12 months with more than 800 per cent jump in value from $6,718 as of April 16, 2020, amid enhanced interest from institutions and significant investors such as Tesla, PayPal, Visa, Square, and a lot of more. According to a current Bloomberg study on crypto outlook for 2021, Bitcoin may well even climb more than sixfold up to $400,000 in 2021 equivalent to the bull run of 2013 and 2017. “Our graphic depicts Bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since the 2011 high,” the study had noted.
The total industry cap of all cryptocurrencies had topped $2 trillion for the initial time earlier this month with Bitcoin dominating 54.1 per cent of it at $1.09 trillion industry cap, according to the information from crypto tracker CoinGecko. The $1 trillion addition to the all round industry cap had occurred in 3 months from the $1 trillion industry cap as of January 7, 2021. Currently, there are 6,704 coins with a combined industry cap of practically $2.3 trillion with 50.9 per cent dominance by Bitcoin and 12.4 per cent by Bitcoin’s closest rival Ethereum.