Bank of America’s senior analyst assumes that Bitcoin’s recent bull run “blows the doors off prior bubbles.”
Chief investment strategist at the Bank of America has termed Bitcoin’s latest bull run as the “mother of all bubbles,” saying that it “blows the doors off prior bubbles,” like the dotcom bubble of the early 2000s.
Michael Hartnett warned investors in his “Flow Show” of the “violent inflationary price” that surged the price of Bitcoin and stoked the equities market.
Hartnett has reported having advised the investors to “sell the vaccine.” He stated that “frothy prices, greedy positioning, inflationary and desperate policymakers, peaky China and consumer all [all] ultimately [a] toxic brew in 2021.”
To be clear, if Hartnett had said the same by the start of 2018 before Bitcoin’s previous bull run came to an end, he would have been considered farsighted.
However, Bitcoin investors think that things are different this time. Nic Carter, the co-founder of Castle Island Ventures, said that the 2017 boom was partly due to Bitcoin functioning as a means for retail investors to invest in ICOs and exposure to altcoins.
“That’s very much not the case today,” stated Carter. The SEC had cracked down on the ICOs, many of them dubious, and the market attracted long-term institutional investors and impeccable infrastructure.
With that said, Bitcoin crashed along with global markets last March when the pandemic started spreading. The situation today is similar: governments must vaccinate their populations to outpace the spread of the latest COVID variant.
Despite the fact that traders are dismissing the reruns of the early 2018 market crash, the Bitcoin market may contend with a similar problem that caused its destruction in 2020.
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