Some 81% of fund managers believe bitcoin is in a bubble, even after May’s 35% price crash, according to the latest Bank of America Global Fund Manager survey.
The results for the period June 4-10 are up six percentage points from last month’s data, indicating sentiment on Wall Street has turned more bearish.
The survey showed 72% of the fund managers surveyed think the recent uptick in inflation is transitory. Bitcoin is often seen as a hedge against inflation, and many crypto analysts attribute the cryptocurrency's gains over the past year to concern about increasing inflation. So the Bank of America survey might be suggesting those concerns have abated somewhat.
The survey also found fund managers no longer see bullish bitcoin bets as the “most crowded trade” on Wall Street. “Long commodities” ranked as the most crowded trade, displacing “long bitcoin,” which held the top spot in recent monthly surveys. While bitcoin’s price remains relatively stagnant after the May crash, the price of commodities like oil and iron ore has been climbing.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.