Today, sentiment in the cryptocurrency space remains optimistic. Investors have pushed Bitcoin (CCC:BTC-USD) to fresh all-time highs of more than $63,000 as this trade continues to pick up steam. However, concerns about a potential Bitcoin bubble appear to be starting to form.
Interestingly, the higher Bitcoin goes, the greater the number of institutional investors who believe a bubble is forming. A recent report by CNBC indicates that 74% of a survey of 200 panelists in a Bank of America survey suggest Bitcoin is in a bubble. Those surveyed happen to know what they’re talking about. Indeed, the group reportedly has more than $500 billion in assets under management.
This percentage works out to 148 bears out of 200 respondents. Around 20 respondents said they think Bitcoin will continue to outperform. However, the ratio is quite astonishing.
Here’s more on what’s being reported on this potential bubble in Bitcoin today.
Bitcoin Bubble Fears Forming
In addition to the aforementioned survey, a number of high-profile bears have emerged of late.
One such bear that caught my eye is Bobby Lee, the founder of cryptocurrency exchange BTCC. In a recent CNBC interview, Mr. Lee was quoted as saying “So after it peaks out, whether it’s $200,000, $100,000, or $300,000, people should be aware that it could fall as much as 80% to 90% of its value from the all-time peak.”
Now, a near-term price target in the six-digit range is nothing we haven’t seen before. However, this suggestion that Bitcoin could lose 80%-90% of its value seems to be of concern to bulls today.
Another Bitcoin insider Calvin Ayre has also commented on Bitcoin’s potential demise. In a tweet, he suggested Bitcoin could drop to zero, due to an inability to scale.
Additionally, two of the greatest investors of all time, Warren Buffett and business partner Charlie Munger, have denounced Bitcoin as an investment. These two investors have been bears for some time on Bitcoin, though long-term investors tend to follow their advice, given their track records. Buffett called Bitcoin “rat poison,” while Munger echoed this sentiment, calling Bitcoin “turds.” That’s a pretty strong take on Bitcoin from two iconic investors.
These takes are all strong ones, to be sure. Indeed, investors in Bitcoin have a lot to take in right now. For those listening to the smart money, it is important to consider the Bitcoin bubble rumors brewing.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.