Bitcoin Bubble Has Not Popped Despite Huge Move to the Downside: Bank of America Survey

The majority of fund managers surveyed by Bank of America Corp. think that Bitcoin (BTC) still has plenty of gas in the tank, despite its recent crash from an all-time high of $64,800 to a low of about $33,450.

The poll, which ran from June 4th to June 10th and involved 224 investors with $667 billion under management, reveals how professional managers currently see Bitcoin as a viable asset class amid regulatory uncertainties and given the volatile nature of cryptocurrencies.

According to Bloomberg, about 80% of the respondents think the crypto markets will continue to be frothy and speculative in the months to come.

The poll shows the most popular trade of the moment is commodities, followed by “long Bitcoin.”

Institutional Investor Hall of Famer Rich Bernstein shares the sentiment of the majority of fund managers. In an interview with CNBCs Trading Nation this week, he describes the rush to buy Bitcoin and other crypto assets as dangerously parabolic.

“Bubbles differ from speculation in that bubbles pervade society. They go outside the financial markets.”

“Certainly with cryptocurrencies now, and most likely with most technology stocks, youre starting to see that happen where people are talking about them at cocktail parties.”

Veteran hedge fund manager Paul Tudor Jones remains bullish on Bitcoin, though. He tells CNBCs Squawk Box that BTC is a good hedge against inflation.

“I like Bitcoin as a portfolio diversifier. Everybody asks me, ‘what should I do with my Bitcoin？’ The only thing I know for certain, I want 5% in gold, 5% in Bitcoin, 5% in cash, 5% in commodities.”