J.P. Morgan maintains its long-term Bitcoin target of $140,000, though it said that bullishness has recently faded and institutional investors are now dumping the cryptocurrency in favor of gold.
«The bitcoin flow picture continues to deteriorate and is pointing to continued retrenchment by institutional investors,» according to a note by J.P. Morgan analysts who called current fair value at $35,000 based on the volatility ratio of Bitcoin to gold. «Over the past month, bitcoin futures markets experienced their steepest and more sustained liquidation since the bitcoin ascent started last October.»
J.P. Morgan is also reportedly planning a launch of an actively managed Bitcoin fund for its wealthy clients that could roll out as soon as this summer.
Bank of America
‘Long bitcoin’ was named as the most crowded trade, as agreed by 43 percent of fund managers, in a recent survey released by Bank of America Securities’ chief investment strategist Michael Hartnett who in January this year called the cryptocurrency «the mother of all bubbles».
Despite views about the popularity of the trade, 75 percent of survey respondents believed that Bitcoin was in a bubble zone.
The second most popular trade was ‘long tech’ (21 percent) followed by ‘long ESG’ (20 percent), according to the survey which was conducted between May 7 and 13 with 216 respondents representing $625 billion in assets under management.
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