Despite the current value crash in Bitcoin, the majority fund managers believed the crypto to be a bubble, according to the most up-to-date Bank of America Global Fund Manager survey. The June survey, which ran June 4-June 10 and involved 224 fund managers with more than $667 billion in assets beneath management stated, “81 per cent of investors still think Bitcoin is a bubble despite the price pullback.” This is up from 74 per cent in the April survey and 75 per cent in May. Around nine per cent disagreed with the notion of the Bitcoin bubble in June, down from 16 per cent in April.
However, the collective skepticism wasn’t echoed by everybody. Jason Deane, analyst at Quantum Economics, told Decrypt that the survey “demonstrates that a lack of understanding of what problems Bitcoin solves is still prevalent in certain sectors – it is still seen as just another asset to trade by some at this time.” The getting of the survey came amid a 50 per cent drop in Bitcoin value from more than $64,000 as of April 14, 2021, to $31,700 as of June 8 prior to it recovered back to more than the $41,000-mark on Tuesday, as per CoinMarketCap.
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On the other hand, Bitcoin has continued to attract a developing quantity of corporates and institutional investors to back it. MicroStrategy followed Tesla, Galaxy Digital Holdings, Voyager Digital, Square and so on., have been amongst the major public businesses owning the highest quantity of Bitcoins in the world, as per information from BitcoinTreasuries.org. In truth, MicroStrategy is now hunting to sell as significantly as $1 billion in widespread shares to invest in more Bitcoin right after it closed a $500 million bond sale on Monday to acquire Bitcoins. Moreover, Tesla’s Elon Musk on Sunday had tweeted that the corporation will get started accepting Bitcoins right after it confirms there would be a affordable use of clean power by miners.
In terms of trades that fund managers see as most overdone, commodities replaced May’s leader, Bitcoin. “Long commodities is top with 26 per cent of FMS (fund manager survey) investors saying it is the most “crowded trade”.” Bitcoin had jumped to the major position in May right after the April survey noted that a extended position on Bitcoin was seen to be the second most crowded trade by 27 per cent respondents following technologies stocks.