Hartnett pointed out in a recent report that the dramatic rise in bitcoin over the past two years – a rise of about 1000% since the beginning of 2019 – is far greater than the gains for other assets that have had a massive run-up in the past. has. few decades.
These include a rise in gold prices of more than 400% in the late 1970s, as well as other notable investment mania: Japanese equities in the late 1980s, Thailand’s stock market in the mid-1990s, dot-coms in the late 1990s, and housing. prices in the mid-2000s. These sectors all made three-digit percentage gains before crashing on Earth.
More recently, Chinese stocks, biotechnologies and the FAANG’s of Big Tech have also made huge profits.
Hartnett did not predict that bitcoin prices would fall per se. Instead, he cites the foam in cryptocurrency prices as another example of ‘increasingly speculative’ investment behavior. He also warned of the growing interest in IPOs and SPACs for large unicorn startups.
Hartnett is not the only one ringing bitcoin alarm bells. As the US dollar has stabilized slightly recently, some warn that one of the big issues of the bulls for bitcoin ownership no longer exists.
“The bitcoin drivers here are not protecting themselves from a collapse of dollars, they are simply paying twice as much for an ‘asset’ as they were on Thanksgiving, ‘Mike O’Rourke, chief market strategist at JonesTrading, said on Thursday. a report said.
Investors mostly picked up the BofA warning on Friday. Bitcoin has risen slightly. It has risen just over 20% in the last five days.