Bitcoin and the crypto sector, in general, are facing extreme fluctuations. Bitcoin recently managed to score a 10% growth to reach the 38,000 dollar mark. However, the crypto fell over 50% from its all-time high after Tesla refused to accept it as a payment method.
Now, the Bank of America’s latest survey shows how 81% of their fund managers believe that Bitcoin is in a bubble. Moreover, the June survey showcases a definite hike since the previous months. The institution noted the percentage at 75% in May and 74% in April.
Fewer novice traders are showing interest in BTC. However, the crypto still showcases immense potential after Elon Musk stated how Tesla could reaccept Bitcoin. As per Elon, if BTC miners find a way to use 50% clean energy, Tesla will start accepting Bitcoin.
Similarly, MicroStrategy Inc. also supported BTC by considering selling $1 billion worth of stock to invest in Bitcoin. The recently concluded survey showcases figures recorded in the first week of the Bitcoin dip back in May. It reported that the masses are preferring long commodities, making them the most crowded trade.
Raw products like silver, lumber, gold, and oil are included in the list. However, as many investors fear an impending wave of inflation, they are investing in precious metals. The survey included 224 fund managers who accounted for over $650 billion worth of assets under jurisdiction. However, skepticism is not followed by the masses.
Jason Deane (Quantum Economics’ Analyst) stated that the survey shows a lack of understanding of Bitcoin’s use-cases. He added that Bitcoin isn’t merely a means of value transfer.
The Bank of America concluded a survey that states over 81% of fund managers believe Bitcoin is in a bubble. While the masses are startled by BTC’s fluctuations, people like Jason Deane highlight how people misunderstand Bitcoin’s use-cases.