Bank of America Survey: Most Fund Managers Say Bitcoin Is a Bubble, Inflation Is Temporary

Bank of America's latest Global Fund Manager Survey shows that "long bitcoin" is currently the second-busiest transaction. Additionally, most fund managers believe bitcoin is in a bubble and agree with the Fed that inflation is temporary. Bank of America's June Fund Manager Survey Bank of America (BofA) released its June Global Fund Manager Survey this week. The survey, conducted between June 4 and 10, covers 224 fund managers with $667 billion under management. Fund managers were asked on many topics of interest to investors, from where the economy and markets were headed, to how much cash portfolio managers were holding, and which transactions they found the most exaggerated. “Long commodities” are currently the most heavily traded and overtake “long bitcoin”, which is currently the second most intense trade. The third most intense trading is long technology stocks, followed by long ESG, short US Treasuries and long euro. Despite the fall in BTC prices, 81% of fund managers surveyed still believe that Bitcoin is in a bubble. That's a slight increase from May, when 75% of fund managers surveyed said bitcoin was in the bubble zone. Bank of America itself also warned that the cryptocurrency is in a bubble. The bank's chief investment strategist said in January that Bitcoin is the "mother of all bubbles". Meanwhile, 72% of fund managers say inflation is temporary, in line with what the Fed said. However, 23% think that inflation is permanent. Federal Reserve Chairman Jerome Powell has used the word "temporary" several times to describe the threat of inflation to the US economy. However, many people have expressed disagreements with him, including renowned hedge fund manager Paul Tudor Jones and JPMorgan CEO Jamie Dimon. What do you think of this Bank of America Fund Manager survey? Let us know in the comments below.

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