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