Bitcoin | 74% of fund managers think it is just a bubble: Bofa survey

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Bitcoin has appreciated by leaps and bounds in the past one year. This has raised eyebrows and posed questions about how long this rally will last. According to the BofA Global Fund Managers Survey, 74% of the fund managers are of the view that Bitcoin is just a bubble while 7% think equities as a bubble.

“This number could have been 100% few years back. We are happy that now 16% have changed their views. Even the likes of Visa and JP Morgan who were Initially against Bitcoin have now become proponents of the technology. Marquee Fund managers like Ray Dalio and Larry Fink of Blackrock have praised Bitcoin as a dependable alternative asset class. There might be short term price corrections in Bitcoin similar to any new asset class, but the long term prospects of Bitcoin has always been positive,” said Vikram Subburaj, co-founder and CEO of Giottus Crytocurrency Exchange.

Bitcoin is currently trading at $61,434 and has given 109% returns since the start of 2021. Experts say that one of the primary reasons is the fact that apart from retail investors, institutional investors are also buying Bitcoins. Elon Musk, the owner of Tesla, recently announced that he invested $1.5 billion in Bitcoin. Similarly MicroStrategy, the US-based business intelligence company, recently announced that as of February 24, 2021, the company holds an aggregate of approximately 90,531 Bitcoins, which were acquired at an aggregate purchase price of approximately $2.171 billion.

“The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely adopted cryptocurrency, can serve as a dependable store of value. We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin,” said Michael J Saylor, CEO, MicroStrategy.