Bank of America Predicts ‘Mother of All Bubbles’ for Bitcoin

CRYPTONAIRE LYWEEK

CRYPTO investment journal

Bank of America Predicts ‘Mother of All Bubbles’ for Bitcoin

Bank of America’s chief investment strategist sees “the mother of all bubbles” in bitcoin. He compared the cryptocurrency’s recent rally to other bubbles, emphasizing the “increasingly speculative” investing behavior of bitcoin.

Bank of America Warns of Huge Bitcoin Bubble

Bitcoin’s recent rally has worried a number of prominent financial analysts who warned of a huge bubble. Among them is Michael Hartnett, chief investment strategist at Bank of America Securities.

He explained on Friday that the recent surge in bitcoin’s price may be another case of a speculative mania, emphasizing that bitcoin looks like “the mother of all bubbles.” The strategist believes that “violent” inflationary price action in markets helped bitcoin’s rally in the last two months. Hartnett noted that bitcoin has outperformed other assets in the past few decades with its price surging about 1,000% since the beginning of 2019.

Bitcoin “blows the doors off prior bubbles,” he said, holding its performance up to other past bubbles. They include a surge in gold prices of more than 400% in the late 1970s, Japanese stocks in the late 1980s, and Thailand’s stock market in the mid-1990s. He also compared bitcoin’s rally to dot-coms in the late 1990s and housing prices in the mid-2000s. The strategist pointed out that those sectors saw triple-digit percentage gains before crashing down. Read more...

CRYPTONAIRE LYWEEK

CRYPTO investment journal