Bank of America’s chief investment analyst sees bitcoin as the “mother of all bubbles.” He compared the latest cryptocurrency rally to other bubbles, stressing bitcoin’s “increasingly speculative” investment conduct.
Bank of America Warns of Huge Bitcoin Bubble
Bitcoin’s latest rebound concerned a number of influential financial experts who warned of a massive bubble. Among them is Michael Hartnett, Chief Investment Management Officer at Bank of America Securities.
He clarified on Friday that the latest rise in bitcoin prices could be another case of speculative mania, stressing that bitcoin looks like “the mother of all bubbles.” The strategist claims that “violent” inflationary price activity on stocks has helped bitcoin rally in the last two months. Hartnett acknowledged that Bitcoin has outperformed other commodities in the last few decades with values increasing by around 1,000 per cent since the beginning of 2019.
Bitcoin “blows the doors off the prior bubbles,” he said, hanging on to other past bubbles. This include a rise in gold prices by more than 400 per cent at the end of the 1970s, Japanese reserves at the end of the 1980s, and Thailand’s stock exchange in the mid-1990s. He has compared the Bitcoin boom to dot-coms in the late 1990s and house values in the mid-2000s. The analyst pointed out that certain industries saw triple-digit percentage gains before they collapsed.
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