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According to the latest Bank of America Global Fund Manager survey, 81% of fund managers believe bitcoin is in a bubble, even after May’s 35% crash.
Results for June 4-10 are up six percentage points from data last month, indicating sentiment on Wall Street has turned more bearish.
Skepticism among the 224 fund managers surveyed arises despite new signs of institutional interest in bitcoin from hedge funds and banks, including Wells Fargo.
The survey showed that 72% of fund managers surveyed believe the recent rise in inflation is transitory. Bitcoin is often viewed as a hedge against inflation, and many cryptocurrency analysts attribute the cryptocurrency’s gains over the past year to concerns about rising inflation. The Bank of America investigation could therefore suggest that these concerns have subsided somewhat.
The survey also found that fund managers no longer view bullish bitcoin bets as the most crowded trade on Wall Street. Long commodities ranked as the most crowded trade, replacing long bitcoin, which took the top spot in the latest monthly surveys. While the price of bitcoin remains relatively stagnant after the May crash, the price of commodities like oil and iron ore has risen.
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