Chief Strategist at Bank of America says Bitcoin doesn’t need rivals when it is in itself a rival. Considers past surges of Bitcoin for comparing them with current investment mania by institutional sector.
Bitcoin’s Bulls-Run had been worrying many within and outside the crypto industry. Many of the analysts from the financial sector had suggested forthcoming of the end of Bitcoin’s Bull-Run. The prominent amongst these financial analysts was one Michael Hartnett, Head of Investment Strategy Department of Bank of America Securities.
On Friday the 8th of Jan, the renowned strategist stated that Bitcoin does not need any rivals. He added further that Bitcoin within itself is a rival of its own.
Hartnett explained that the current investment frenzy from the institutional sector could easily be regarded as an instance of “speculative mania”. He emphasized that if there is any anticipated harm that could occur to Bitcoin then it is Bitcoin itself.
He pointed out that the value surged earned by Bitcoin within the past two to three months was because of violent inflation. Hartnett also said that Bitcoin’s value had surged by more than 1,000% since 2019 to date. Bitcoin trading outperformed several traditional assets and outclassed gold as well in 2020, said Hartnett.
Hartnett pointed that in 1970, the value of Gold surged by about 400%. Similarly in 1980 till mid-’90s stock markets in Japan and Thailand surged by 350%. However, all the percentages were lost with a single stroke, when the markets collapsed and the values of gold and stocks fell to the ground. He said that the same omen he had been expecting for the Bitcoin whose been riding the Bull-Run since 2020.
Certainly, the head strategist at Bank of America had not pointed out any dropping of the value of Bitcoin. Instead, Hartnett was indicating the “increased speculation” within the investment sector.
It seemed as if that investors had attached high hopes with Bitcoin and neglected the odd possibilities, he added. Furthermore, they have grown too much of expectancy from Bitcoin, which exposes Bitcoin against vulnerability. There are times when assets do not perform as expected, but neither do they fall, but what happens is that investors lose their interest. This lack of interest could seriously hurt Bitcoin in the long run, concluded Hartnett.