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Bank of America\u2019s chief investment strategist sees \u201cthe mother of all bubbles\u201d in bitcoin. He compared the cryptocurrency\u2019s recent rally to other bubbles, emphasizing the \u201cincreasingly speculative\u201d investing behavior of bitcoin.<\/strong><\/p>\n Bitcoin\u2019s 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.<\/p>\n He explained on Friday that the recent surge in bitcoin\u2019s price may be another case of a speculative mania, emphasizing that bitcoin looks like \u201cthe mother of all bubbles.\u201d The strategist believes that \u201cviolent\u201d inflationary price action in markets helped bitcoin\u2019s 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.<\/p>\n Bitcoin \u201cblows the doors off prior bubbles,\u201d 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\u2019s stock market in the mid-1990s. He also compared bitcoin\u2019s 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.<\/p>\n <\/ins> <\/ins> <\/p>\n The Bank of America strategist did not say that the price of bitcoin will plunge like other bubbles in the past. However, he noted that the surge in prices of cryptocurrencies is another example of \u201cincreasingly speculative\u201d investing behavior.<\/p>\n Others who have recently warned about a bitcoin bubble include David Rosenberg, chief economist and strategist at Rosenberg Research. He started warning about a bitcoin bubble<\/a> back in December, describing BTC<\/a> as \u201cjust a classic, follow-the-herd, extremely crowded trade.\u201d Another warning comes from NYU professor of economics, Nouriel Roubini, aka Dr. Doom. \u201cThe price of bitcoin is totally manipulated by a bunch of people, by a bunch of whales,\u201d he claimed at the end of December. \u201cIt doesn\u2019t have any fundamental value. We\u2019re close to the point where the hyperbolic bubble is going to go bust.\u201d<\/p>\nBank of America Warns of Huge Bitcoin Bubble<\/h2>\n
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